What Is It Called When a Diversified Company Can Add

question 78

Multiple Choice

What is it called when a diversified company can add value by shifting capital from business units generating free cash flow to those needing additional capital to expand and realize their growth potential?

• A) Internal capital market
• B) Cash cow benefits
• C) Economic value added
• D) Shareholder value added
• E) Derived valuation

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Definitions:

Self-Efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Lay Judgments

Decisions or opinions formed by non-experts based on common sense or personal experiences.

Good Target

An object or goal that is deemed particularly worthwhile, desirable, or suitable for pursuit or attention.

Social Expectancies

Presumptions or anticipations about the behaviors that are deemed acceptable or normal within a social context or group.