When should a business NOT be divested?
A) when the business is worth more to another company than to the parent company
B) when the business is a cash cow
C) when the business provides valuable strategic or resource fits for another company
D) when shareholders would be better served if the company sells the business for a generous premium
E) when the business lacks the cross-boundary presence of shared values and cultural compatibility

Question

Quizplus · Accepted Answer

When a business is a cash cow, meaning it generates steady profits and requires minimal investment, it can provide essential financial stability and a consistent revenue stream for the parent company. Divesting such a business may not be wise.

When Should a Business NOT Be Divested