Which of the Following Is Not a Key Difference Between

question 5

Multiple Choice

Which of the following is not a key difference between a multidivisional company and a holding company?

• A)Multidivisional companies have a centralized treasury;holding companies do not
• B)The parent of a holding company appoints the boards of directors of its subsidiaries;the HQ of a multidivisional company directly appoints divisional managers
• C)The subsidiaries of a holding company are responsible for their own financing decisions;the divisions of a multidivisional company need only to consider their credit ratings
• D)Multidivisional corporations typically have a single,integrated strategic planning process;holding companies do not.

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Definitions:

Compounded Monthly

A finance term where interest is calculated and added to the principal balance each month, increasing the amount of future interest earned.

Periodic Payment

Payments made or received regularly over a specific period, often monthly or annually.

GIC

In Canada, a Guaranteed Investment Certificate is a type of investment that guarantees a fixed return rate over a certain period.

Compounded Annually

Interest on an investment calculated once a year, where each year's interest adds to the principal.