Which of the Following Is NOT Part of the Task

question 65

Multiple Choice

Which of the following is NOT part of the task of checking a diversified company's business lineup for adequate resource fit?

• A) Determining whether the excess cash flows generated by cash cow businesses are sufficient to cover the negative cash flows of its cash hog businesses
• B) Determining whether recently acquired businesses are acting to strengthen a company's resource base and competitive capabilities or whether they are causing its competitive and managerial resources to be stretched too thinly across its businesses
• C) Determining whether opportunity exists for achieving 1 + 1 = 2 outcomes
• D) Determining whether the company has adequate financial strength to fund its different businesses and maintain a healthy credit rating
• E) Determining whether the corporate parent has or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into

Recognize the role of heuristics in decision making, including their benefits and drawbacks.

Identify various behavioral biases and their effects on economic decision making.

Understand the significance of impulse buying and its impact on economic models.

Comprehend the concept of System 1 and System 2 in the brain and their roles in decision making.