Two Divisions of a Company Decide to Use the Same

question 96

Multiple Choice

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and to reduce the fixed costs assigned by corporate headquarters.This is an example of ________________.

• A) an unrelated diversification strategy
• B) concentration on a single business
• C) international expansion
• D) focused differentiation strategy
• E) synergy

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Definitions:

Replenish Petty Cash

The process of adding funds to a petty cash fund, typically done when the balance drops to a predefined level, to ensure availability of cash for small, immediate expenses.

Minor Expenditures

Small or insignificant costs that are usually of a non-recurring nature and may not be capitalized.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity, effectively providing interest to the holder.

Notes Receivable

Financial assets representing amounts owed to a company, promised to be paid back with interest.