Corporate restructuring can be a result of more institutional ownership. Restructuring can cause
A) changes in the amount of assets versus the amount of liabilities of the firm.
B) the sale of low-profit margin divisions.
C) the removal of current management and/or large reductions in the workforce.
D) All of the options

Question

Quizplus · Accepted Answer

Corporate restructuring can involve various changes that aim to improve the financial performance of the firm. These changes may include reducing the number of low-profit margin divisions, selling certain assets, reducing liabilities, and even removing current management or laying off employees. Institutional ownership can influence the restructuring decisions of a company, as institutional investors may encourage changes that can optimize the firm's financial performance and improve shareholder value. Therefore, all of the options mentioned (A, B, and C) can be a result of corporate restructuring.

Corporate Restructuring Can Be a Result of More Institutional Ownership