Oracle Has Been Diversifying in the Software Industry Through Acquisition

question 110

True/False

Oracle has been diversifying in the software industry through acquisition of firms such as PeopleSoft as described in the Strategic Focus. There are very close linkages between Oracle and the various units and for the strategy to work, Oracle must develop mechanisms to share activities. Oracle is clearly following a related linked diversification strategy.

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Definitions:

Total Return

The overall return on an investment over a specific period, including both capital gains and income, such as dividends or interest.

Quarterly Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to shareholders every quarter.

Preferred Shares

Types of stock that provide dividends before dividends are distributed to common stockholders and typically do not provide voting rights.

Income Yield

The earnings generated and realized on an investment over a particular period of time, typically expressed as a percentage of the investment's cost.