Which of the following is an important appeal of a related diversification strategy?
A. Represents an effective way of capturing valuable financial fit benefits
B. Offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another
C. Offers significant opportunities to strongly differentiate a company's product offerings from those of rivals
D. Is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification
E. Is typically more profitable than unrelated diversification, which is a major factor in helping related diversification pass the attractiveness test
B. Offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another
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The pricing objective of maximizing profits
a. has not been affected by other, more socially focused concerns. b. is to be implemented under any and all circumstances. c. has not always been considered the underlying objective of any pricing policy. d. must be considered when determining the price needed to increase market share.
During the year just ended, Salt Company made the following expenditures relating to its plant building: Continuing and frequent repairs ..................... $160,000 Repainted the plant building ........................ 40,000 Major improvements to the electrical wiring system .. 128,000 Partial replacement of roof tiles ................... 56,000 How much should be charged to repair and
maintenance expense during the year just ended? a. $160,000 b. $216,000 c. $256,000 d. $328,000
Which of the following is the BEST advice for using template documents that are available with word processing software?
a. Avoid their use altogether; they are worthless. b. Recognize their shortcomings, and use them cautiously. c. Use the deductive templates, but ignore the inductive and persuasive ones. d. Use them with confidence, as they were developed by experts.
Discuss the differences between the breakdown and buildup approaches to measuring company sales potential. What are the similarities between these two approaches?
What will be an ideal response?