The Observation That Cash-Rich Firms Often Use the Funds to Diversify

question 57

Multiple Choice

The observation that cash-rich firms often use the funds to diversify rather than increase dividends indicates that:

• A) diversification is too costly for individuals.
• B) growth is often valued for the sake of growth alone.
• C) diversification is synergistic.
• D) dividend-pricing models are of questionable value.

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Definitions:

Human Resource Model

A framework for managing the workforce of an organization, focusing on policies, systems, and practices for maximizing employee performance and satisfaction.

Chief Executive Officers

The highest-ranking executives in a company, responsible for making major corporate decisions, overseeing the overall operations and resources, and acting as the main point of communication between the board of directors and corporate operations.

Human Resource Departments

Divisions within organizations responsible for managing employee-related processes like hiring, training, benefits, and compliance.

Outplacement Services

Support and assistance provided by an employer to help former employees transition to new jobs following layoffs or job loss.