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