Which of the Following Is the BEST Guideline for Deciding

question 11

Multiple Choice

Which of the following is the BEST guideline for deciding what the priorities should be for allocating resources to the various businesses of a diversified company?

• A) Businesses with high industry attractiveness ratings should be given top priority and those with low industry attractiveness ratings should be given low priority.
• B) Business subsidiaries with the brightest profit and growth prospects, attractive positions on the nine-cell matrix, and solid strategic and resource fits generally should head the list for corporate resource support.
• C) The positions of each business in the nine-cell attractiveness-strength matrix should govern resource allocation.
• D) Businesses with the most strategic and resource fits should be given top priority and those with the fewest strategic and resource fits should be given low priority.
• E) Businesses with high competitive strength ratings should be given top priority and those with low competitive strength ratings should be given low priority.

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Definitions:

Acquiring Firm

A company that takes over or buys another company, typically referred to in the context of mergers and acquisitions.

Target Firm

A company that is the subject of a takeover attempt or acquisition interest by another company.

Management Team

The group of individuals who oversee the operations of a business and make high-level strategic decisions.

Tender Offer

A proposal made publicly by an individual or company to purchase shares from shareholders of a public corporation at a specified price within a certain time frame.