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One Action That an Organization May Take with Respect to an SBU

Question 120

Multiple Choice

One action that an organization may take with respect to an SBU classified as a dog is to sell it.It seems odd that one organization would want to buy another's dog.Which of the following might explain such a purchase?


A) A need to generate large amounts of short-run cash
B) A desire to expand into a rapidly growing market
C) Possible synergistic effects on the buying organization
D) A decision to adopt a retrenchment strategy
E) A desire to complete a hostile takeover of the seller

Correct Answer:

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