Diversification initiatives must be justified by the creation of value for shareholders.
Answer the following statement true (T) or false (F)
True
Diversification initiatives, whether through mergers and acquisitions, strategic alliances and joint ventures, or internal development, must be justified by the creation of value for shareholders. They typically are successful when they introduce synergy.
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Parallel loans are useful to
A. save taxes. B. save tariffs. C. avoid foreign exchange risk. D. save interest costs.
Which of the following applies to the U.S. dollar orientation approach to the translation of foreign operations?
a. It requires an enterprise to account for foreign operations as if those operations actually occurred in U.S. dollars. b. It recognizes that the foreign operations occurred in a foreign currency and that those operations may not affect U.S. dollars. c. Foreign currency denominated assets, liabilities, revenues, and expenses are assumed to be measured in the foreign currency but are translated to U.S. dollars for reporting purposes. d. The effects of changing exchange rates are not reported in income until the net assets are exchanged.
A union declares its workers are going on strike. The employer states the collective bargaining agreement is still in force for another eight months and that it contains a no-strike clause. The union claims the CBA's no-strike provision is not binding since new union leadership is in place. Which of the following statements is correct?
a. The union can strike since new leadership is now in control. b. The union can strike since no-strike provisions have been ruled by the courts to be unenforceable. c. The union cannot strike, as strikes to exert economic pressure on management are prohibited by the NLRA. d. The union cannot strike because of the no-strike clause in the contract.
More established ventures will use a sales forecast model where the estimation of current sales will increase a certain percentage over the prior period's sales. This percentage is based upon
a. newly established sales only. b. an inventory analysis. c. a trend line analysis. d. past experience.