Which one of the following is not a rationale for retaining a cash hog business in a diversified company's portfolio?
A) Capital infusions needed from the corporate parent are modest relative to the funds available.
B) There is a decent chance of growing the business into a solid bottom-line contributor.
C) The business is in an industry with low attractiveness and has a weak competitive position in that industry.
D) There is a better than even chance that investing in the cash hog will result in it becoming a star business with a strong or market-leading competitive position in a high growth market and high levels of profitability.
E) The cash hog has a valuable strategic fit with other business units.
Correct Answer:
Verified
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