Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, which one of the following is not one of the main strategy options that a company can pursue?
A) Stick closely with the existing business lineup.
B) Restructure the company's business lineup.
C) Craft new initiatives to build or enhance the company's reputation.
D) Divest some businesses and retrench to a narrower diversification base.
E) Broaden the diversification base.
C) Craft new initiatives to build or enhance the company's reputation.
Strategic moves to improve a diversified company's overall performance do not include crafting new initiatives to enhance the company's reputation but instead include: (1) sticking closely with the existing business lineup and pursuing the opportunities these businesses present, (2) broadening the company's business scope by making new acquisitions in new industries, (3) divesting some businesses and retrenching to a narrower base of business operations, and (4) restructuring the company's business lineup and putting a whole new face on the company's business makeup.
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Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?
a. In the investing section if the amount of investing activities are greater than the financing activities amount. b. In the financing section if the amount of financing activities are greater than the investing activities amount. c. In a note to the financial statements or in a supplemental schedule. d. The transaction does not need to be disclosed.
In comparison to other modes of transportation, motor carriers ______.
A. are safer B. provide more flexibility C. are faster for long distances D. are much more expensive
Joe M. purchases a house for $410,000. He sells the home 8 years later for $629,000. What is his
internal rate of return (IRR)? A) 5.15% B) 1.50% C) 15% D) 5.50%
Which of the following is the correct sequence of events in the percentage of sales method?
A) Find percentage of profit owner takes out of the business. Find assets as a percentage of sales and multiply change in sales. Multiply forecasted sales by the historic profit margin. Find liabilities as a percentage of sales and multiply change in sales. B) Find assets as a percentage of sales and multiply change in sales. Find liabilities as a percentage of sales and multiply change in sales. Multiply forecasted sales by the historic profit margin. Find percentage of profit owner takes out of the business. C) Find percentage of profit owner takes out of the business. Find assets as a percentage of sales and multiply change in sales. Find liabilities as a percentage of sales and multiply change in sales. Multiply forecasted sales by the historic profit margin. D) Multiply forecasted sales by the historic profit margin. Find assets as a percentage of sales and multiply change in sales. Find liabilities as a percentage of sales and multiply change in sales. Find percentage of profit owner takes out of the business.