Businesses that should be strongly considered for divestiture during restructuring include those:
A)With high value in the financial markets
B)With high R&D expenses
C)With low operational relatedness
D)With low to moderate risk
E)With high capital intensity

Question

Quizplus · Accepted Answer

Businesses with low operational relatedness should be strongly considered for divestiture during restructuring. This means that the business does not have strong strategic or synergistic connections with the rest of the organization, and divesting it would not significantly harm the overall performance of the company. It is often easier and more effective to focus resources on businesses with high operational relatedness, rather than trying to maintain a diverse portfolio. The other choices do not necessarily indicate a need for divestiture during restructuring, as businesses with high value, R&D expenses, capital intensity, or risk may still be important to the overall strategy and performance of the company.

Businesses That Should Be Strongly Considered for Divestiture During Restructuring