Identify and Briefly Describe the Six Steps Involved in Evaluating

question 25

Essay

Identify and briefly describe the six steps involved in evaluating a diversified company's business lineup and diversification strategy.

---

Definitions:

Repay Principal

The process of paying back the original amount of money borrowed, not including interest, from a lender or creditor.

Paying Wages

The process of compensating employees for their labor, typically calculated by the hour, day, or based on output.

Cash Outflow

Money that is spent or transferred out of a business, reducing its cash balance.

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.