Sara Lee Corporation is a large conglomerate of businesses participating in a variety of industries. A few years ago, Sara Lee was considering the purchase of Bryan Foods. If Bryan Foods represented a tremendous opportunity to make the company more successful, Sara Lee may, as a last resort, have considered

Question

Quizplus · Accepted Answer

Selling assets from another division is the best choice as it would provide long-term funding for the acquisition of Bryan Foods without affecting the current financial position of the company. The sale of assets would enable Sara Lee to retain control over its operations and profitability while also expanding its business. Seeking short-term financing or using trade credit may not provide adequate funding for the acquisition, and using future sales revenues could put the company at risk if the sales projections are not met. Sharing the idea with competitors could be detrimental to Sara Lee's competitiveness in the market.

Sara Lee Corporation Is a Large Conglomerate of Businesses Participating