Which One of the Following Is Not a Reasonable Option

question 21

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:

Corporate Bank

A financial institution that provides services such as loans, currency exchange, and large-scale investment opportunities to businesses and corporations.

Commercial Letter

A commercial letter is a document used in international trade that provides specific instructions or information regarding the shipment of goods.

Secure Form

A digital form that implements security measures to protect the data being transmitted from unauthorized access or alterations.

Importer's Bank

A financial institution that facilitates transactions, including payment, for a company importing goods from another country.