Bright Billion Inc., a large conglomerate, wants to liquidate its business in certain industries to improve its overall profitability.Which of the following industries would Bright Billion Inc.find it most difficult to exit?

Question

Quizplus · Accepted Answer

Bright Billion Inc. would find it most difficult to exit the steel industry in which the company has obligations like severance pay toward employees. Exit barriers are comprised of both economic and social factors. A company exiting an industry may still have contractual obligations to suppliers, such as employee health care and retirement benefits, as well as severance pay.