The sports business will also often have number of ties in the community, and these will also need to be unwound. In particular, breaking relationships with charitable organizations is something that will be a challenge for management. However, the business will soon need to move onto the business of liquidating the assets, which could include stadiums.
If there are fixed assets involved in either an unwinding of a business or restructuring of the business, the company needs to take into account the disposal of these assets. Sometimes, a fixed asset like an arena or stadium can be sold. This is likely to be the case if there was any government funding for constructing the building. However, it is not responsible to leave such a fixed asset unsold, even if it is a challenge to find a buyer. A sports business that owns such assets should have a contingency plan at all times for the disposal of that asset in the event of unwinding or restructuring.
For the finance professional, restructuring or unwinding a sports business is not much different than for any other corporation. The objectives must be determined, and then steps taken to control the finances of the process and thereby ensure that the change is done in the most efficient manner. It is important especially when a business is being unwound that the financial manager understands what obligations the organization has to the creditors, and that it takes steps to protect the value of its assets. This is important because people within the organization...
Diversification General Electric has long worked within a conglomerate structure that gives it a significant amount of diversification. The company breaks down its diversification in its annual reports. GE earned $148.6 billion in 2014, coming in the following segments: The largest group is GE Capital, which itself has a high level of diversification: The company's diversification approach is generally strong. First, GE has done this for decades and is therefore more familiar with
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