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    Reinvest or Divest

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    Compare and contrast the considerations underlying the decision to reinvest in business operations with the considerations underlying the decision to divest operations.

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    a) Business decision to reinvest will be for following reasons:
    1. One is seeing scope for business.
    2. Firm's capability in the field of investment to fare well at market place.
    3. Considering various opportunities it is better to invest in the business.
    4. There is enough profitability and cash generation to sustain and grow business in long run.
    5. The firm view that it can create a niche market for survival and growth of business.
    6. It is familiar with all the ...

    Solution Summary

    The solution compares and contrasts Reinvest and Divest in business operations.