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An Argument in Favour of Diversified Companies with a Balance

question 51

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An argument in favour of diversified companies with a balance of cash-generating and cash-devouring businesses is that it is cheaper and easier to balance capital requirements internally than to source capital in the financial markets.


Definitions:

Photoheterotrophs

Organisms that obtain their energy from sunlight but rely on organic substances for their carbon source.

Photoautotrophs

Organisms that carry out photosynthesis to synthesize nutrients from carbon dioxide and water using sunlight as an energy source.

Chemoheterotrophs

Organisms that obtain their energy by consuming organic molecules created by other organisms.

Vector

In biology, an organism that transmits a disease or parasite from one animal or plant to another. In mathematics and physics, it represents a quantity having both magnitude and direction.

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