According to Campbell, Goold, and Alexander in Their Parenting-Fit Matrix

question 55

Multiple Choice

According to Campbell, Goold, and Alexander in their parenting-fit matrix when parent companies create more value than any of their rivals would if they owned the same businesses, they have

• A)multi-point competition.
• B)parenting advantage.
• C)corporate parenting.
• D)portfolio analysis.
• E)no real advantage.

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Definitions:

Preemptive Right

The right of existing shareholders to purchase additional shares before the company offers them to the public, to maintain their proportionate ownership.

Seasoned Equity

Refers to additional equity issued by a company that has already had securities publicly traded.

Rights Offering

A financial offering in which a company grants existing shareholders the right to buy additional shares at a discount to the market price before the new shares are offered to the public.

Term Loans

Term loans are monetary loans that are repaid in regular payments over a set period of time, typically used for financing specific assets or projects.