When the Return on Investment for Each Division of a Corporation

question 104

Multiple Choice

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business,that corporation is said to have achieved

• A) synergy.
• B) a leveraged buyout.
• C) its hurdle rate.
• D) the status of a true conglomerate.
• E) Stage III.

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Definitions:

Measure of Variability

A measure of variability quantifies the spread of data points in a dataset, indicating how much the data values differ from each other.

Bell Shaped Distribution

A type of distribution in which the frequency of data values is highest in the middle, resembling the shape of a bell.

Mean, Median, Mode

Statistical measures of central tendency; mean is the average of a set of numbers, median is the middle value when numbers are arranged in order, and mode is the most frequently occurring value in a data set.

Positively Skewed

A distribution of data where most of the values gather on the left side, with the tail extending to the right, indicating that the mean is greater than the median.