The Most Compelling Reason Companies Should Diversify Can Be Found

question 41

Multiple Choice

The most compelling reason companies should diversify can be found in situations where _______ can be leveraged with other products or into markets that are not a part of where they were created.

• A) cash
• B) disruptive competencies
• C) core competencies
• D) finances

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Definitions:

Progressive Taxes

A tax system where the tax rate increases as the taxable amount increases, leading higher income individuals to pay a higher rate than lower income individuals.

Corporate Schedule

A plan or timeline adopted by a corporation outlining important dates for tasks, projects, meetings, and financial reporting.

Loss Carrybacks

A tax provision allowing companies to apply current year losses to past income years to receive tax refunds.

Carryforwards

Tax provisions that allow firms to use current year's net operating losses to reduce taxable income in future periods.