A divestiture is unlikely to be undertaken because of:
A)high debt from an LBO.
B)the need to diversify.
C)poor performance.
D)a lack of strategic fit.

Question

Quizplus · Accepted Answer

A divestiture involves selling off a particular business or asset of a company. If the company needs to diversify its business or expand its operations, it is not likely to undertake a divestiture. On the other hand, high debt from an LBO, poor performance, or a lack of strategic fit may all be reasons to consider divesting.

A Divestiture Is Unlikely to Be Undertaken Because Of