Which is an example of a non-core asset?

Which is an example of a non-core asset?

• A. Subsidiaries held for value and equity method investments
• B. Primary operating facilities
• C. Inventory
• D. Accounts receivable

Answer: (A)

Non-core assets are items not essential to a company’s day-to-day operations; they are assets that the business could dispose of without hindering its ability to generate main revenue. Subsidiaries held for value and equity method investments fit this because their primary purpose is to earn returns from investments, not to support production or service delivery. The other options are tied directly to core operations: primary operating facilities are where production or service is delivered, inventory consists of goods for sale, and accounts receivable are amounts owed by customers. These are integral to the business model and cash flow. So, the best example of a non-core asset is subsidiaries held for value and equity method investments.

Non-core assets are items not essential to a company’s day-to-day operations; they are assets that the business could dispose of without hindering its ability to generate main revenue. Subsidiaries held for value and equity method investments fit this because their primary purpose is to earn returns from investments, not to support production or service delivery. The other options are tied directly to core operations: primary operating facilities are where production or service is delivered, inventory consists of goods for sale, and accounts receivable are amounts owed by customers. These are integral to the business model and cash flow. So, the best example of a non-core asset is subsidiaries held for value and equity method investments.