Which of the Following Is Not a Value Adding Activity

question 4

Multiple Choice

Which of the following is not a value adding activity of the corporate parent?

• A) Actively seeking to challenge and develop the strategic ambitions of the business units
• B) Investment, especially in the early days of new ventures
• C) Buffering managers from the realities of the financial markets by providing a financial safety net
• D) Providing expertise and services not available within smaller units
• E) Providing clarity and focus in envisioning the overall role and expectations of the organisation

---

Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a particular time, showing assets, liabilities, and shareholders' equity.

Retained Earnings Statement

A report detailing changes in retained earnings, including net income and dividends, over a specific period.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, not necessarily coinciding with the calendar year.

Treasury Stock

Treasury stock consists of shares that were issued and subsequently reacquired by the company, not retired but held in the company's treasury.