Identify the Incorrect Statement Pertaining to Multiproduct Firms

question 93

Multiple Choice

Identify the incorrect statement pertaining to multiproduct firms.

• A) They have a more difficult strategic planning job than firms with only a few products or product lines.
• B) They have to develop strategic plans for very different businesses.
• C) They have to balance plans and resources so the whole company reaches its objectives.
• D) They have to get needed resources without milking some businesses and eliminating others.
• E) They may form strategic business units, or use portfolio management.

---

Definitions:

Operating Cycle

The process by which a company spends cash, generates revenues, and receives cash from customers.

Stockholders' Equity

The stake in a corporation's assets left over after all debts are cleared, signifying an ownership interest.

Liabilities

Financial obligations or debts that a company owes to others.

Assets

Resources owned by a business that are expected to bring future benefits.