The Four Possible Strategies That Can Be Pursued for Each

question 61

Multiple Choice

The four possible strategies that can be pursued for each SBU are building,holding,________ and ________.

• A)harvesting;divesting
• B)promoting;selling
• C)downsizing;expanding
• D)diversifying;penetrating
• E)developing;growing

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Definitions:

Annual Discount Rate

The rate used to discount future cash flows to the present value, reflecting the time value of money and investment risk.

Receiving Annually

Refers to receiving a particular sum or type of benefit every year.

Perpetually

Continuing forever or for an indefinite period without anticipated termination.

Cash Flow

The total sum of cash and cash-equivalents that flows in and out of a company.