The Strategic Options to Improve a Diversified Company's Overall Performance

question 72

Multiple Choice

The strategic options to improve a diversified company's overall performance do NOT include which of the following categories of actions?

• A) Broadening the company's business scope by making new acquisitions in new industries
• B) Increasing dividend payments to shareholders and/or repurchasing shares of the company's stock
• C) Restructuring the company's business lineup with a combination of divestitures and acquisitions to put a whole new face on the company's business makeup
• D) Pursuing multinational diversification and striving to globalize the operations of several of the company's business units
• E) Divesting weak-performing businesses and retrenching to a narrower base of business operations

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Definitions:

Short-Term Financing Policies

Strategies a company uses to manage its immediate or short-term financial needs and operational expenses.

Conservative Financing Policy

A financial strategy that prioritizes safety and liquidity, often characterized by maintaining high cash reserves and using less leverage.

Trade Credit

An agreement in which a customer can purchase goods or services on account, paying the supplier at a later scheduled date.

Capital Budget

The process of planning and managing a company's long-term investments in major assets or projects.