Pros and Cons of Demergers

Question 1

What are four reasons for demergers?

Answer 1

reduced DEOS
specialisation
sell assets
reduce cultural differences

Question 2

Pros of demergers

Answer 2

reduce cultural conflicts
lower prices and increased quality

Question 3

Cons of demergers

Answer 3

lower job security
reducing EOS and increasing prices

Question 4

What is a demerger?

Answer 4

when a firm sells off parts of its company / separates