One Way a Diversified Company Can Increase Its Profitability Is

question 45

True/False

One way a diversified company can increase its profitability is by acquiring inefficient or poorly managed companies and then restructuring them to improve their performance.

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Definitions:

Notes Receivable

A written promise that obligates a borrower to repay a specific amount of money, with or without interest, to a lender at a future date or on demand.

Interest Revenue

Income a company earns from its cash deposits, investments, or other interest-bearing accounts.

Miscellaneous Income

Income from non-core business activities that do not fit into other income categories, often irregular or infrequent.

Outstanding Checks

Checks that have been written and recorded in accounting but have not yet been cashed or cleared by the bank.