Research Shows That a Key Competence of High-Performance Diversified Firms

question 86

Multiple Choice

Research shows that a key competence of high-performance diversified firms is the ability to

• A) hide excess capital.
• B) efficiently dispose of excess capital.
• C) effectively allocate financial capital.
• D) invest internationally.

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Definitions:

Operations

Refers to the ongoing activities of a business that are involved in the production and distribution of products or services.

Indirect Method

A method of reporting cash flows from operating activities by adjusting net income for changes in non-cash accounts.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company's operations is used.

Operating Activities

Transactions and events that affect net income, primarily related to the core operations of a business.