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  3. GEM Computers has topped the Wall Street headlines with its organization-wide restructuring exercise. GEM Computers, a computer

GEM Computers has topped the Wall Street headlines with its organization-wide restructuring exercise. GEM Computers, a computer

admin2014-12-30  21
问题 GEM Computers has topped the Wall Street headlines with its organization-wide restructuring exercise. GEM Computers, a computer giant, sold its low margin competitive desktop division. In recent years, GEM Computers has spent billions of dollars investing in the desktop division, where low cost manufacturers have managed to stay at the top of the competition. However, GEM’s desktop products have virtually stopped evolving and ceased making new products despite its heavy spending on R&D. This has caused the cash-stricken company to offer its loss-making division to Electronica. As one of the leading computer companies, Electronica paid $5 billion to buy the division. The market deems this as more favorable to GEM, as it received more than what it deserves for selling the division. It is expected to pay off most of its multimillion dollar loans and avoid filing for bankruptcy for some time. Economists comment that GEM will start turning a profit as long as it keeps with its core products of mini computers and mainframe systems.
Why did GEM Computers make its decision to make the move?
选项 A、Electronica made an offer they couldn’t refuse.
B、The company was on the verge of bankruptcy.
C、The division was not making enough profits.
D、The demand for computer desktops was low.
答案C
解析 GEM公司向该部分投入了大量资金，却未能得到相应的回报，因此决定将其出售给电子公司。答案是(C)。
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