The Rising Ratio of Divestitures to New Acquisitions That Occurred

question 17

Multiple Choice

The rising ratio of divestitures to new acquisitions that occurred in the past suggests that

• A) poison pills are no longer effective as a defense against takeovers.
• B) too much diversification strained the operating capabilities of many firms.
• C) the portfolio effect has been a highly successful method of reducing risk.
• D) multinational firms are increasingly considered high risky investments.

Learn the impact of foreign operations on financial statement preparation and translation.

Understand the basic accounting equation and how various transactions affect it.

Distinguish between assets, liabilities, and equity and their roles in the accounting equation.

Identify the effects of revenue, expenses, and withdrawals on a company's financial position.

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Definitions:

Target Audience

Refers to a specific group of consumers or organizations most likely to respond positively to a company's promotions, products, or services.

Strategic Planning

A structured approach to imagining a preferred future and converting this dream into general goals or targets, along with a series of actions to reach these goals.

Social Responsibility

The ethical framework suggesting that individuals and companies have a duty to act in the best interest of their environment and society as a whole.

Crisis Situation

An urgent, high-stakes challenge or emergency that demands immediate and strategic response from an organization.