When Strategists Think About a Proposed Diversification Move, They Must

question 4

Multiple Choice

When strategists think about a proposed diversification move, they must assess the extent to which their firm's resources and capabilities match the ________.

• A) needs of potential subsidiaries
• B) needs of their own firm
• C) production schedule
• D) capabilities of potential subsidiaries

---

Definitions:

Net New Borrowing

Net new borrowing is the difference between the amounts a company borrows and repays during a specific period, reflecting changes in its debt level.

Net New Equity

The difference between equity capital raised by issuing new shares and the equity capital reduced by buying back shares.

Dividends Paid

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Net New Borrowing

The total amount of new debt a company has taken on minus any debt that has been repaid during a specific period.