Why do some diversification efforts pay off and others produce poor results? Why should companies even bother with diversification initiatives?
What will be an ideal response?
Feedback: Discuss what businesses a corporation should compete in and how these businesses should be managed to jointly create more value than if they were freestanding units. Keep in mind that 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.
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Analysts use measures of long-term _____ to evaluate a firm's ability to meet interest and principal payments on long-term debt and similar obligations as they come due. If a firm cannot make the payments on time, it becomes insolvent and may have to reorganize or liquidate
a. insolvency factors b. reorganization factors c. liquidity risk d. insolvency risk e. cash flow risk
Which law governs the fiduciary responsibility that employers have with regards to employees’ payroll deductions?
a. ACA b. ERISA c. FICA d. FLSA
Erosion is the additional cash generated by a new project beyond the current cash flow with the addition of a specific new project
Indicate whether the statement is true or false.
The law considers everyone under the age of twenty-one to be a minor
Indicate whether the statement is true or false