Spending on Which of the Following Would Be Considered Discretionary

question 51

Multiple Choice

Spending on which of the following would be considered discretionary?

• A) healthcare
• B) housing
• C) furniture
• D) clothing
• E) transportation

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Definitions:

Horizontal

In economic terms, horizontal integration refers to the process of a company increasing production of goods or services at the same part of the supply chain.

Corporate Restructuring

A broad term describing a number of ways in which companies are reorganized. Includes capital restructuring, mergers, and reorganizations in bankruptcy as well as changes in certain methods of doing business.

Capital Structure

The composition of a company's liabilities and shareholders' equity, which could include debt, common equity, preferred equity, among other securities, used to finance its operations and growth.

Divestitures

The process of selling off subsidiary business interests or investments as a strategic move for a company.