Which of the Following Is Not a Key Difference Between

question 5

Multiple Choice

Which of the following is not a key difference between a multidivisional company and a holding company?

• A)Multidivisional companies have a centralized treasury;holding companies do not
• B)The parent of a holding company appoints the boards of directors of its subsidiaries;the HQ of a multidivisional company directly appoints divisional managers
• C)The subsidiaries of a holding company are responsible for their own financing decisions;the divisions of a multidivisional company need only to consider their credit ratings
• D)Multidivisional corporations typically have a single,integrated strategic planning process;holding companies do not.

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Definitions:

Unenforceable

A term applied to a contract that, because of a law, cannot be enforced by the courts.

False Information

The act of providing incorrect, untrue, or misleading details about something or someone, often with the intent to deceive.

Implied Ratification

The acceptance and endorsement of a previously unauthorized act by acting in a manner that recognizes it as valid or by failing to repudiate it.

Express Ratification

The explicit approval or confirmation of an act or contract that was initially unauthorized or in need of validation.