The Ease with Which Bondholders and Shareholders May Convert Their

question 91

Multiple Choice

The ease with which bondholders and shareholders may convert their investments into cash is called ________.

• A) barter
• B) clearing
• C) countertrade
• D) liquidity

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Definitions:

Unrelated Diversification

A business strategy whereby a company expands into industries that are not related to its current line of business.

Acquiring New Businesses

The process of a company purchasing or merging with other companies to expand its operations, enter new markets, or gain competitive advantages.

Distribution Alliance

A partnership between companies to allow for the more efficient distribution and availability of products.

Strategic Alliance

A partnership between two or more companies to pursue a set of agreed-upon objectives while remaining independent organizations.