Over the Past 30 Years, the Tendency in the USA

question 26

Multiple Choice

Over the past 30 years, the tendency in the USA and Europe has been

• A)a trend for highly diversified groups to dominate industries.
• B)a trend for diversified firms to refocus and reduce their diversification.
• C)reduced opportunity for firms to further diversify.
• D)a deliberate move to avoid copying the strategy of firms in emerging economies.

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Definitions:

Debt to Equity Ratio

A financial ratio that compares the total liabilities of a company to the total amount of shareholder equity.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity position of the business.

Long Term Liabilities

Obligations or debts that are due to be paid after one year or more, such as bonds payable or long-term loans.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used for valuing companies and comparing their financial health.