The Businesses in a Diversified Company's Lineup Exhibit Good Resource

question 6

Multiple Choice

The businesses in a diversified company's lineup exhibit good resource fit when

• A)the resource requirements of each of its businesses exactly match the resources the company has available.
• B)its individual businesses add to a company's resource strengths and when it has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin.
• C)each business unit generates just enough cash flow annually to fund its own capital requirements and thus does not require cash infusions from the corporate parent.
• D)each business unit produces sufficient cash flows over and above what is needed to build and maintain the business,thereby providing the parent company with enough cash to pay shareholders a generous and steadily increasing dividend.
• E)there are enough cash cow businesses to support the capital requirements of the cash hog businesses.

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Definitions:

Participant Observation

A qualitative research method in sociology where the researcher immerses themselves in a group or community to observe and participate in their activities, in order to better understand their behaviors, beliefs, and interactions.

Rationalizations

The process of attempting to logically justify behaviors or attitudes with plausible but not always genuine reasons.

Criminals

Individuals who have committed actions that violate laws and are therefore subject to legal penalties.

Participant Observation

A qualitative research method in which the researcher immerses themselves in the environment they are studying, participating in the activities while observing the setting and individuals within it.