Diversification Analysis Refers to

question 262

Multiple Choice

Diversification analysis refers to

• A)a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
• B)a tool that helps identify the degree to which a firm or organization is in compliance with government regulations regarding the hiring of minorities.
• C)a formula used to award government contracts based upon a firm or organization complicity with federal hiring guidelines.
• D)a tool used to determine the appeal of each SBU or offering and then determine the amount of cash, if any, each should receive.
• E)a tool used to determine which products within a company's product line should be dropped due to a loss of market share in the industry.

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Definitions:

Credits

Accounting entries that increase liabilities or equity or decrease assets, representing the opposite of debits.

Owner Invests

occurs when the owner of a business contributes assets, commonly in the form of cash or equipment, into the business for its use.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment.

Revenue

Income generated from normal business operations and includes discounts and deductions for returned merchandise.