Which of the Following Is NOT Part of the Task

question 49

Multiple Choice

Which of the following is NOT part of the task of checking a diversified company's business lineup for adequate resource fit?

• A) determining whether the excess cash flows generated by cash cow businesses are sufficient to cover the negative cash flows of its cash hog businesses
• B) determining whether recently acquired businesses are acting to strengthen a company's resource base and competitive capabilities or whether they are causing its competitive and managerial resources to be stretched too thinly across its businesses
• C) determining whether opportunity exists for achieving 1 + 1 = 2 outcomes
• D) determining whether the company has adequate financial strength to fund its different businesses and maintain a healthy credit rating
• E) determining whether the corporate parent has or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into

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Definitions:

U.S. Economic Activity

The total production, distribution, and consumption of goods and services within the United States, reflecting the health of the nation's economy.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including costs of materials, labor, and overhead.

Finished Goods Inventory

Represents the value of a company's completed products ready for sale but not yet sold at the end of an accounting period.

Occupancy Rate

The ratio or percentage of occupied spaces to the total number of available spaces in a facility, such as a hotel or apartment complex.