CIMA Financial Strategy F3 Question # 80 Topic 9 Discussion

CIMA Financial Strategy F3 Question # 80 Topic 9 Discussion

F3 Exam Topic 9 Question 80 Discussion:
Question #: 80
Topic #: 9

A large multi-divisional company in the food processing and distribution business is conducting a strategic review.  The divisions all compete in the same market.

 

The sale of one of its underperforming food processing divisions to the divisional management team is currently being considered. The purchase by the divisional management team will require venture capital finance.

 

Which THREE of the following are likely to influence the multi-divisional company's decision on whether or not to sell the under-performing division to the management team?


A.

The divisional management team has detailed confidential information about the operation of the other divisions.


B.

The divisional management team has skills and experience that are important for the future successful operation of other divisions.


C.

The ability of the management team to raise the finance required to complete the purchase of the division at a reasonable price.


D.

The quality of the management team and its ability to manage the divested division successfully.


E.

The specific conditions imposed on the management team by the venture capital provider. 


Get Premium F3 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.