- CFA Exams
- CFA Exam: Level II 2021
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 10. Corporate restructuring
CFA Practice Question
The following are important motives for privatization except:
B. Infusion of cash.
C. Economies of scale.
D. Individual parts are worth more than the whole.
A. A division is a poor fit within the overall company.
B. Infusion of cash.
C. Economies of scale.
D. Individual parts are worth more than the whole.
Correct Answer: C
User Contributed Comments 4
| User | Comment |
|---|---|
| lsum | Why C ??? |
| arudkov | may be it minz that u say @good buy@ 2 part of a company and sell it. so. no economy on synergy. |
| davcer | Economies of scale=synergy in integrating parts, all of the other answers are about divestiture |
| CFAJ | where is the cash coming from if you privatise? |