As a Rule,all the Industries Represented in a Diversified Company's

question 47

Multiple Choice

As a rule,all the industries represented in a diversified company's business portfolio should be judged on such attractiveness factors as

• A) market size and projected growth rate.
• B) emerging opportunities and threats,the intensity of competition,and the degree of industry uncertainty and business risk.
• C) resource requirements and the presence of cross-industry strategic fits.
• D) seasonal and cyclical factors,industry profitability,and whether an industry has significant social,political,regulatory,and environmental problems.
• E) All of these choices are correct.

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Definitions:

Journal Entry

A record in accounting that represents a transaction in which there has been a change in the value of the company's assets, liabilities, or equity.

Installation Costs

Expenses associated with setting up or installing equipment, machinery, or software, making them ready for use.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions, indirect expenses, and changes in working capital.

Depreciation Expense

A technique in accounting that involves spreading out the expense of a physical asset over its expected lifespan.