Until Spun Off in 2007,Kraft Was Part of Altria Group,Inc

question 42

Multiple Choice

Until spun off in 2007,Kraft was part of Altria Group,Inc.Kraft had its own management team,mission statement,and target markets different from Altria Group,Inc.Kraft was a _____ of Altria Group,Inc.

• A) joint venture
• B) diversified division
• C) heterogeneous element
• D) strategic alliance
• E) strategic business unit

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Definitions:

Distribution Efficiencies

The effectiveness with which a company is able to deliver its products or services to its customers in the most cost-effective manner.

Tax Shields

Reductions in income tax liability achieved through allowable deductions such as mortgage interest, depreciation, or charitable donations.

Bondholders

Investors who own bonds issued by a corporation or government, essentially lending money to the issuer in exchange for periodic interest payments and the return of principal at maturity.

Bankruptcy Probabilities

Bankruptcy Probabilities represent the likelihood of a company or entity being unable to meet its financial obligations and thus having to declare bankruptcy.