Corporate-Level Strategy Is Concerned with ____ and How to Manage

question 129

Multiple Choice

Corporate-level strategy is concerned with ____ and how to manage these businesses.

• A) whether the firm should invest in global or domestic businesses
• B) what product markets and businesses the firm should be in
• C) whether the portfolio of businesses should generate immediate above-average returns or should be troubled businesses which will create above-average returns only after restructuring
• D) whether to integrate backward or forward.

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Definitions:

Gain On Sale

The profit realized when an asset is sold for more than its book value.

Indirect Method

A way of presenting the cash flow statement that adjusts net income for changes in balance sheet accounts to calculate cash flow from operating activities.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Accumulated Depreciation

Accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reducing its book value on the balance sheet.