Which One of the Following Might You Recommend to a Firm

question 51

Multiple Choice

Which one of the following might you recommend to a firm with excessive free cash flow?

• A) Acquire a firm to diversify
• B) Acquire a firm to bootstrap earnings
• C) A leveraged buyout
• D) A repurchase of shares

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Definitions:

Production Facility

A location or establishment where goods are manufactured or assembled.

Hazardous Wastes

Hazardous Wastes are materials that pose considerable harm to health or the environment, requiring special handling, treatment, and disposal.

Proximity To Raw Materials

The strategic advantage gained by being located near the supply of raw materials, reducing transportation costs and time.

Physical Characteristics

The tangible attributes or features of an object, person, or location that can be observed with the senses.