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:

Brittle Conditions

Circumstances under which materials or rocks break or fracture without significant plastic deformation when subjected to stress.

Relatively Shallow

Describes an area of water or feature that is not deep compared to its surroundings.

Fracturing

The act or process of breaking or cracking solid materials, often referring to rocks splitting due to physical, chemical, or mechanical forces.

Brittle Conditions

Scenarios in which rocks fracture or break apart rather than deform plastically when subjected to stress, typically occurring at shallower depths.