Besides Focusing on Controlling Critical Inflows and Outflows,a Contingency Plan

question 59

Multiple Choice

Besides focusing on controlling critical inflows and outflows,a contingency plan needs to also include identification of specific strategies for cutting costs as well as the possible ________.

• A)sale of the business
• B)aggressive expansion to counteract the downturn
• C)changing the company name
• D)restructuring of the venture

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Definitions:

Conglomerate Merger

A conglomerate merger occurs between companies operating in different industries, aimed at diversification and potential synergies.

Defensive Mergers

Defensive mergers are strategic actions taken by companies to fend off hostile takeovers, merge with competitors or acquire businesses in non-related industries to diversify their portfolio and reduce competition.

Corporate Valuation Method

It includes various techniques used to assess the total value of a company, incorporating its financial performance, assets, and market value.

Event Studies

A research method that assesses the impact of specific events on the value of a company’s stock.