TechnoSol Ltd

question 95

Multiple Choice

TechnoSol Ltd. produces solar heating devices, including solar panels. The company decides to pursue an unrelated diversification corporate-level strategy when it buys

• A)the retail stores that sell its solar panels.
• B)the metal supplier for its solar panels.
• C)a company that produces athletic gear, including basketball shoes.
• D)a company that produces heating equipment, including furnaces.

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Definitions:

Unamortized Discount

The portion of a bond discount that has yet to be expensed in the income statement over the bond's life.

Gain

Refers to the profit earned from the sale of an asset or investment for more than its purchase cost, excluding income from the primary business activities.

Redeemed

The process of exchanging a financial security or voucher for cash, goods, or services.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified call price, often to take advantage of declining interest rates.