A Key Consideration in the Holding Company Decision Is ________

question 184

Multiple Choice

A key consideration in the holding company decision is ________.

• A) the risk-return tradeoff due to the leverage effect
• B) the greater "distance" between top level and operating management
• C) the risk of the domino effect if one company in the holding company fails
• D) the risk from the separate "companies" in the holding company being classed as one company

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Definitions:

Accepted

Acknowledged or agreed upon; typically refers to an agreement or proposal that has been agreed to by all parties involved.

Mailbox Rule

A rule providing that an acceptance of an offer takes effect at the time it is communicated via the mode expressly or impliedly authorized by the offeror, rather than at the time it is actually received by the offeror. If acceptance is to be by mail, for example, it becomes effective the moment it is placed in the mailbox.

Offer

A proposal presented by one party to another as a basis for negotiations in a potential contract.

Accepted

Regarded as satisfactory or agreed upon; an acknowledgement of an offer or situation.