The Task of Crafting Corporate Strategy for a Diversified Company

question 96

Multiple Choice

The task of crafting corporate strategy for a diversified company encompasses

• A) picking the new industries to enter and deciding on the means of entry.
• B) initiating actions to boost the combined performance of the businesses the firm has entered.
• C) pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage.
• D) steering corporate resources into the most attractive business units.
• E) All of these choices are correct.

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Definitions:

Deferred Call Provision

A clause in a bond contract that prohibits the issuer from repurchasing the bond until a specified date has passed.

Callable Bond

A type of bond that can be redeemed by the issuer before its maturity date at a specified price.

Redemption

The process by which securities or financial instruments are converted into cash or its equivalent value.

Collar

A protective options strategy that involves buying a put option and selling a call option on the same asset to limit the range of possible returns.