Which One of the Following Is Not a Reasonable Option

question 124

Multiple Choice

Which one of the following is not a reasonable option for deploying a diversified company's financial resources?

• A) Making acquisitions to establish positions in new businesses or to complement existing businesses
• B) Concentrating most of a company's financial resources in cash cow businesses and allocating little or no additional resources to cash hog businesses until they show enough strength to generate positive cash flows
• C) Funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses
• D) Paying down existing debt, increasing dividends, or repurchasing shares of the company's stock
• E) Investing in ways to strengthen or grow existing businesses

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Definitions:

Investor Model

A business strategy that focuses on attracting outside investors to provide the capital necessary for growth or startup, often with the promise of future returns.

Equity Stake

An ownership interest in a company or property, usually in the form of stocks, representing a portion of the investment made.

Crowdfunding Campaign

A financing method where funds are raised through the collective effort of individuals, typically via the internet, to support a project or venture.

Valuable Information

Data or knowledge that can be useful for making decisions or understanding situations better.