A sound justification for unrelated diversification is that
A. doing so can support managerial motives including the prospects for higher compensation
B. doing so can meet expectations for rapid or continuous growth
C. doing so can result in risk reduction by spreading a company's investments over a set of diverse industries
D. doing so can stabilize earnings, i.e., market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
E. doing so can deliver enhanced shareholder value if an undervalued company can be purchased at a bargain price
Answer: E
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The corporate culture at Southwest Airlines includes giving employees permission to make decisions and take action on their own to help their customers. This is the idea behind ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is an advantage of the balanced-scorecard?
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A)?Ralph will be successful since Amanda cannot give away his share of the community estate. B)?Ralph will be successful because of undue influence. C)?Ralph will be successful because of lack of capacity. D)?None of the above
Present and future values concepts are applied in all of the following decisions except
A) purchase of a home. B) calculation of withdrawals needed during retirement. C) calculation of savings for a large purchase. D) annual cash inflows.