When a Company Has Cash in Excess of the Amount

question 44

Multiple Choice

When a company has cash in excess of the amount needed to maintain a competitive advantage in its core business,it will most likely pursue

• A) taper integration.
• B) full integration.
• C) diversification.
• D) long-term contracts.
• E) strategic alliances.

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Definitions:

Investment Banking

A sector of the banking industry that deals with the creation of capital for other companies, governments, and other entities.

Investment Bankers

Professionals who work in financial institutions, facilitating mergers, acquisitions, and the issuance of securities.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment firms.

Primary Market

The segment of the capital market where new securities are issued and sold for the first time.