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Potential drawbacks of divestment
- There may be some loss of economies of scale. Fixed overheads would have a lower capacity to recover them.
- Cash generated may not be put to suitable use thereby reducing the returns.
Sell-off is a form of divestment and is sale of part of a company to a third party, generally for cash. It is a good way of raising cash and focussing on core business activities.
Credit analysis is the financial analysis used for determining the creditworthiness of an issuer using various quantitative and qualitative factors. The four Cs an anal
answers for the personal finance literacy 2nd edition workbook answers chapter 9(obtaining and protecting your credit)
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