For the Purpose of Diversification, a Corporate-Level Cooperative Strategy May

question 44

Multiple Choice

For the purpose of diversification, a corporate-level cooperative strategy may be preferable to a merger or acquisition for all the following reasons EXCEPT:

• A) a host nation may forbid a merger or acquisition.
• B) opportunistic behaviors are less likely.
• C) cooperative strategies require fewer resources.
• D) cooperative strategies allow greater flexibility in diversifying the firm's portfolio.

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Definitions:

Double-Entry Bookkeeping

An accounting system in which the recording of each transaction affects two or more accounts and the total of the debits is equal to the total of the credits.

Debiting

The process of recording an entry on the left side of the accounting ledger, which increases asset or expense accounts and decreases liability, equity, or revenue accounts.

Crediting

The process of making an entry on the right side of an account in double-entry bookkeeping, indicating an increase in liabilities, equity, or revenue, or a decrease in an asset or expense.

Salaries Payable

A liability account representing amounts owed to employees for work performed and not yet paid.