Corporations with Control Both Within and Across Industries Are Formed

question 10

Multiple Choice

Corporations with control both within and across industries are formed by a series of mergers and acquisitions across industries. These corporations are referred to as_______________ ; they combine businesses in different commercial areas, all of which are owned by one holding company.

• A) monopolies
• B) conglomerates
• C) shared monopolies
• D) interlocking corporate directorates

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Definitions:

Financial Drivers

Key factors that influence a company's financial performance, including revenue growth, cost control, asset utilization, and market positioning.

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales minus operating expenses.

Financially Flexible

A state where a company or individual has sufficient access to liquid assets or resources, allowing for easy adaptation to financial challenges or opportunities.

Credit Risk

The risk that a borrower may not repay a loan or meet contractual obligations, leading to financial loss for the lender.