The Ultimate Test of the Value of a Corporate-Level Strategy

question 92

Multiple Choice

The ultimate test of the value of a corporate-level strategy is whether the:

• A) corporation earns a great deal of money.
• B) top management team is satisfied with the corporation's performance.
• C) businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
• D) businesses in the portfolio increase the firm's financial returns.

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Definitions:

Minimum Contacts

A legal principle that determines the ability of a court to exercise jurisdiction over parties, based on their connection to the place where the court is located.

Diversity-of-Citizenship

A legal concept allowing federal courts to hear cases where parties are citizens of different states or a citizen of a state and a foreign country, meeting certain jurisdictional value thresholds.

State of Incorporation

The specific state within the United States where a corporation is registered to operate based on its filing of incorporation documents.

Principal Place of Business

The main location where a company's central operations and management are conducted.