Why would an organization divest some of its existing business operations?
A) To focus more on its core business
B) To create new partnerships
C) Because the divested business is more valuable as a separate company
D) To buy another firm outright
E) To create a new company from several smaller ones
Answer: A
Explanation: A) Sometimes, a corporation decides to sell a part of its existing business operations or set it up as a new and independent corporation. There may be several reasons for such a step. A firm might decide, for example, that it should focus more specifically on its core businesses, and thus it will sell off unrelated or underperforming businesses. Such a sale is called a divestiture.
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Which of the following represents the objective of a social marketing campaign aimed at changing people's values?
A) Motivate people with obesity to eat healthy and exercise more often. B) Change public attitudes and stereotypes associated with people who are obese. C) Explain the different causes of obesity and how it can be prevented. D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity. E) Help people with obesity to implement lifestyle changes.
Offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee is referred to as
A. outside branding. B. direct exporting. C. indirect exporting. D. contract manufacturing. E. licensing.
A firm is considering investing $0.9M in a typical industrial manufacturing application with a three-year production planning cycle under a forecasted market price environment. A simple three-period project pro forma cash flow sheet for this project is shown below:
In the pro forma, the production and price forecast in each period translate to revenue, which can then be netted of production costs to arrive at the expected cash flow in each period. The cash flows are then discounted at a rate that is commensurate with the riskiness of the project (here, assumed to be 10%).
Using the information from the pro forma, discuss what the distribution of the NPV looks like.
What will be an ideal response?
When participating in a group interview,
A) find out about the practice ahead of time to prepare mentally. B) focus your answers and attention on the person who seems to be the "leader." C) give everyone a copy of your résumé. D) address your questions to the most "senior" person present.