Tyco International's Decision to Split into Three Separate Companies Was

question 25

Multiple Choice

Tyco International's decision to split into three separate companies was motivated by:

• A)The scandal involving its former CEO
• B)The belief that Tyco's businesses could achieve greater flexibility and growth as independent companies than as subsidiaries of Tyco
• C)The belief that the synergies among Tyco's businesses were outweighed by the costs of Tyco's corporate HQ
• D)The recognition that Tyco was subject to a "conglomerate discount."

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Definitions:

Exponential Curves

Graphs representing exponential functions, showing how values can grow rapidly due to constant proportionality rates.

Time Constants

A parameter that quantifies the response time of a system to a step input, notably in RC and RL circuits, characterized by the time it takes for a system to change significantly.

Electromagnetic Induction

The phenomenon where an electromotive force (EMF) is induced in a closed circuit by a change in the flux of magnetic field.

Lenz's Law

A principle in electromagnetism stating that an induced electric current will flow in a direction such that it opposes the change in magnetic flux that produced it.