Due to economic regression in United Filipia, the profitability of the large conglomerate Blue Wing Products Inc. (BWP) was poor. An analysis of the company’s business showed that the company could become profitable if it divested a few strategic business units under its banner. From which of the following businesses would BWP find it most easy to exit?

A. The automobile business where the company has contractual obligations with suppliers

B. The airline business where the company’s strategic commitments are long-term

C. The e-commerce retail business where investments on assets are low

D. The pharmaceutical business where the company has a large number of fixed costs

Answer rating: 100% (QA)

The answer is the ecommerce retail business where investments on assets are l... View the full answer