Question

The selling of Busch Entertainment, a theme park unit that owns SeaWorld, by Belgium-based AB InBev after the acquisition of Anheuser-Busch by InBev to ensure a focus on AB InBev’s core business, is an example of:_______

a. franchising.taper
b. integration.
c. a diversification premium.
d. a principal–agent problem.

Answer 1

no option is correct:

Both a and b refer to integration activities, and selling a business is not considered integration. Diversification premium refers to engaging in different types of businesses, which is exactly the opposite of what happened here. And the principal agent problem was included just to fill a blank space.

This would be an example of restructuring a business in order to focus in their core business activity.