Which of the Following Is Not a Reason for a Company

question 28

Multiple Choice

Which of the following is not a reason for a company to expand through a combination,rather than by building new facilities?

• A)A combination might provide cost advantages.
• B)A combination might provide fewer operating delays.
• C)A combination might provide easier access to intangible assets.
• D)A combination might provide an opportunity to invest in a company without having to take responsibility for its financial results.

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Definitions:

Cash Position

An indicator of a company's liquidity, showing the amount of cash or cash equivalents it has on hand at a given time.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a single point in time by detailing assets, liabilities, and equity.

Operating Activities

The day-to-day actions of a business involved in producing and selling its goods or services, which are reflected in the cash flow from operating activities.

Producing

The act of creating, manufacturing, or generating products or services.