Asset sales not only bring good news for investors of the selling firm but also lead to the assets being utilized more effectively after the sale. In addition, these sales may allow business units to be transferred to companies that can manage them more efficiently, resulting in overall improvements for the selling firm's operations. Hence, choice D covering all the above aspects is the best answer.

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Asset Sales

Question 31

Multiple Choice

Asset sales

A) are perceived as good news for investors of the selling firm.
B) are perceived as good news for investors of the selling firm and generally result in the assets being employed more productively after the sale.
C) generally result in the assets being employed more productively after the sale and transfer business units to companies that can manage them more efficiently.
D) are perceived as good news for investors of the selling firm, generally result in the assets being employed more productively after the sale, and transfer business units to companies that can manage them more efficiently.

Correct Answer: