Due to Economic Regression in Freedonia, the Profitability of the Large

Multiple Choice

Due to economic regression in Freedonia, the profitability of the large corporation Happiness Products Inc. (HPI) 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 HPI find it most easy to exit?

A) the automobile industry, 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