When the Return on Investment for Each Division of a Corporation

question 104

Multiple Choice

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business,that corporation is said to have achieved

• A) synergy.
• B) a leveraged buyout.
• C) its hurdle rate.
• D) the status of a true conglomerate.
• E) Stage III.

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Definitions:

Writing

A type of documentation that shows contractual intent and satisfies the statute of frauds requirement.

Vacating

the act of leaving a place or position, or legally nullifying a legal judgment or contract.

Terminates

Brings to an end or concludes an agreement, contract, or employment relationship.

Assigns

Individuals or entities to whom rights or properties are legally transferred.