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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.
Bond Price is the purchase value of a bond. It can be priced either at a premium, discount or at par. It is important for the prospective buyer to know how to det
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explain in detail the primary function of taxation in relation to public fianace
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