Which One of the Following Is NOT a Reasonable Option

question 161

Multiple Choice

Which one of the following is NOT a reasonable option for deploying a diversified company's financial resources?

• A) Making acquisitions to establish positions in new businesses or to complement existing businesses.
• B) Investing financial resources in cash cow businesses until they show enough strength to generate positive cash flows.
• C) Funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses.
• D) Paying down existing debt,increasing dividends,or repurchasing shares of the company's stock.
• E) Investing in ways to strengthen or grow existing businesses.

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Definitions:

Income Tax Expense

The cost incurred by businesses and individuals due to earnings taxed by federal, state, and local governments.

Short-Term Note Payable

A debt obligation that is due within one year or less, typically used for working capital needs or to finance short-term liquidity requirements.

Specified Amount

This term refers to a particular or agreed-upon sum of money in various financial contexts.

Income Tax Expense

The amount of money that a company reports as an expense for paying state, federal, and foreign income taxes.