Which of the Following Is NOT a Part of Checking

question 12

Multiple Choice

Which of the following is NOT a part of checking a diversified company's business units for cross-business competitive advantage potential?

• A) Ascertaining the extent to which business units have value chain match-ups that offer opportunities to combine the performance of related value chain activities and reduce costs
• B) Ascertaining the extent to which business units have value chain match-ups that offer opportunities to transfer skills or technology or intellectual capital from one business to another
• C) Ascertaining the extent to which business units are making maximum use of the parent company's competitive advantages
• D) Ascertaining the extent to which business units have value chain match-ups that offer opportunities to create new competitive capabilities or to leverage existing resources
• E) Ascertaining the extent to which business units present opportunities to share use of a well-respected brand name

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of a business.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity by calculating the present value of expected future cash flows.

Accrual Accounting

A method in accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Payback Method

A capital budgeting technique that calculates the time needed to recoup the initial investment in a project.