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Corporate Level Strategy and Strategic Alternatives Quiz

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Questions and Answers

What is the purpose of disinvestment strategies?

To close down a firm and sell its assets
To replace the existing team in an organization
To sell or liquidate a portion of a business (correct)
To merge sick organizations with healthy ones

When is liquidation strategy typically considered?

After a successful turnaround strategy
To merge with a healthy organization
When the organization is facing serious consequences (correct)
As the first course of action in a turnaround strategy

What does a combination strategy involve?

Merging sick organizations with healthy ones
Closing down the firm and selling its assets
A mix of different strategies mentioned earlier (correct)
Replacing the existing team of the organization

When is disinvestment strategy typically adopted?

When turnaround strategy fails (A) Signup and view all the answers

What is a common outcome of implementing a liquidation strategy?

Loss of employment for workers (A) Signup and view all the answers

What is a key requirement to make a combination strategy effective?

Having the right people to make intelligent decisions (D) Signup and view all the answers

How does a company usually transition into an expansion strategy?

By adopting a stability strategy first (D) Signup and view all the answers

What makes liquidation strategy a last resort option?

Leads to termination of opportunities (D) Signup and view all the answers

When might a company opt for a disinvestment strategy?

When the turnaround strategy proves ineffective (A) Signup and view all the answers

What is the primary concern associated with liquidation strategies?

Loss of employment for workers (C) Signup and view all the answers

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