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:

Hydrochloric Acid

A strong acid composed of hydrogen and chlorine, found in the stomach, where it aids in digestion.

Vinegar

A sour liquid produced from the fermentation of ethanol, commonly used as a condiment and for preservation.

Circumferential Lamellae

Layers of compact bone that wrap around the long bone beneath the periosteum or around the entire circumference of the marrow cavity.

Interstitial

Relating to or situated in the spaces between cells in a tissue or organ.