When a Company Decides to Expand into New Industries,it Must

question 72

Multiple Choice

When a company decides to expand into new industries,it must

• A) construct its business models at two levels.
• B) secure government approval from the Securities and Exchange Commission (SEC).
• C) select a new CEO.
• D) all of these choices.
• E) none of these choices.

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Definitions:

Division of Income

The method by which a company's profit is distributed among its various stakeholders, including shareholders, employees, and sometimes the government in the form of taxes.

General Partnership

A type of partnership where all partners share equally in both the management responsibilities and the liabilities of the business.

Limited Partnership

A partnership with at least one general partner who manages the business and is liable for debts, and one or more limited partners who are only liable to the extent of their investment.