Corporate Restructuring Strategies

question 73

Multiple Choice

Corporate restructuring strategies:

• A) involve making major changes in a diversified company's business lineup,divesting some businesses and/or acquiring others,so as to put a whole new face on the company's business lineup.
• B) entail reducing the scope of diversification to a smaller number of businesses.
• C) entail selling off marginal businesses to free up resources for redeployment to the remaining businesses.
• D) focus on crafting initiatives to restore a diversified company's money-losing businesses to profitability.
• E) focus on broadening the scope of diversification to include a larger number of businesses and boost the company's growth and profitability.

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Definitions:

Adjusting Entry

A journal entry made in an accounting period to adjust income or expense accounts to accurately reflect the revenues earned and expenses incurred during that period.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid or recorded in the company's accounts.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial results over a specific period.