alleryStart learning →A firm sells non-core businesses. Which motive does this serve?
ARaising its tax rate
BEntering new markets
CSharpening core focus
DMore diversification
Answer & Solution
Correct answer: C. Sharpening core focus
Selling non-core units lets management concentrate resources on the business the firm is best at.
Keep practising Corporate Spin-Off
Browse all Corporate Spin-Off questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What do the new SEC rules adopted in 2024 require SPAC filings to display prominently?Compared with an IPO, a SPAC route requires what?A SPAC listing is called the poor man's version of what?What right do SPAC investors have at merger?Which SPAC debuted on the Hong Kong exchange on March 18, 2022?In which year did SPAC IPOs peak with 613 IPOs raising about USD 162 billion?SPAC shares redeemable at USD 10 averaged USD 3.85 post-merger. About what fall is that?Under which SEC form is a SPAC public offering typically filed?