Which of the Following Is Not Generally Something That Ought

question 123

Multiple Choice

Which of the following is not generally something that ought to be considered in evaluating the attractiveness of a diversified company's business makeup?

• A) Market size and projected growth rate, industry profitability, and the intensity of competition
• B) Industry uncertainty and business risk
• C) The frequency with which strategic alliances and collaborative partnerships are used in each industry, the extent to which firms in the industry utilize outsourcing, and whether the industries a company has diversified into have common key success factors
• D) Seasonal and cyclical factors, resource requirements, and whether an industry has significant social, political, regulatory, and environmental problems
• E) The presence of cross-industry strategic fits

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Bonus Issue

An issue of shares to existing shareholders in proportion to their current shareholdings at no cost to the shareholders.

Ordinary Shares

Equity shares that represent a portion of a company's capital, entitling holders to vote and share in the profits.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some values.