CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

The following are important motives for privatization except:

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?
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