Which of the Following Statements About Cross-Business Strategic Fit in a Diversified

question 33

Multiple Choice

Which of the following statements about cross-business strategic fit in a diversified enterprise is not accurate?

• A) Strategic fit between two businesses exists when the management know-how accumulated in one business is transferable to the other.
• B) Strategic fit exists when two businesses present opportunities to economize on marketing, selling, and distribution costs.
• C) Competitively valuable cross-business strategic fits are what enable related diversification to produce a 1 + 1 = 3 performance outcome.
• D) Strategic fit is primarily a byproduct of unrelated diversification and exists when the value chain activities of unrelated businesses possess economies of scope and good financial fit.
• E) Strategic fit exists when a company can transfer its brand name reputation to the products of a newly acquired business and add to the competitive power of the new business.

Understand and perform calculations for the determination of missing financial values using given interest rates and time periods.

Calculate simple and compound interest for various financial situations and investments.

Apply the concept of time value of money in situations involving multiple payments or investments over time.

Analyze and solve problems involving loan repayment schedules, including determining the size of equal payments.

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Definitions:

Cumulative Voting

A voting system that allows shareholders to allocate their total votes in any manner they choose, across multiple candidates, which can benefit minority shareholders.

Board of Directors

A group of individuals elected to represent shareholders and govern and oversee the management and direction of a company.

Straight Voting

A voting procedure in board elections where shareholders must vote for directors individually, not as a slate.

Board of Directors

A collective of persons chosen by the shareholders to supervise the administration and make significant decisions on behalf of the corporation.