With an Unrelated Diversification Strategy,the Types of Companies That Make

question 85

Multiple Choice

With an unrelated diversification strategy,the types of companies that make particularly attractive acquisition targets are

• A) financially distressed companies with good turnaround potential,undervalued companies that can be acquired at a bargain price,and companies that have bright growth prospects but are short on investment capital.
• B) companies offering the biggest potential to reduce labor costs.
• C) cash cow businesses with excellent financial fit.
• D) companies that are market leaders in their respective industries.
• E) companies that are employing the same basic type of competitive strategy as the parent corporation's existing businesses.

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Definitions:

Debited

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transfers, by a business from transactions involving goods or services.

Cash Account

A financial account that records cash transactions, including receipts and payments of cash.

Debited

A term used in accounting to indicate a transaction that increases an asset or expense account, or decreases a liability or equity account.