Which of the Following Is NOT a Reasonable Option for Deploying

question 74

Multiple Choice

Which 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

---

Definitions:

Brand Name

The name given to a product or service by a company, which is used to identify and distinguish it from competitors' products or services.

Licensing

A business arrangement where one party (the licensor) allows another (the licensee) to use its intellectual property, brand, or technology in exchange for a fee or royalty.

Global Market Entry

Strategies and methods used by companies to start doing business in new international markets.

Potential Profit

The expected earnings a business can achieve from its operations, investment activities, and other financial ventures, assuming all conditions are favorable.