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?

    <p>When turnaround strategy fails</p> Signup and view all the answers

    What is a common outcome of implementing a liquidation strategy?

    <p>Loss of employment for workers</p> Signup and view all the answers

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

    <p>Having the right people to make intelligent decisions</p> Signup and view all the answers

    How does a company usually transition into an expansion strategy?

    <p>By adopting a stability strategy first</p> Signup and view all the answers

    What makes liquidation strategy a last resort option?

    <p>Leads to termination of opportunities</p> Signup and view all the answers

    When might a company opt for a disinvestment strategy?

    <p>When the turnaround strategy proves ineffective</p> Signup and view all the answers

    What is the primary concern associated with liquidation strategies?

    <p>Loss of employment for workers</p> Signup and view all the answers

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