Diversification Decisions by fiRms Involve Two Key Issues: How Attractive

question 42

True/False

Diversification decisions by firms involve two key issues: how attractive is the industry to be entered and can the firm establish a competitive advantage within it?

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Definitions:

Consolidated Income Tax Return

A single income tax return filed by a parent company that includes all incomes, deductions, and credits of all members of a corporate group.

Intra-entity Transfers

Transactions of assets, services, or funds between divisions, departments, or units within the same entity.

Voting Stock

Stocks that grant the holder voting power regarding corporate governance and the selection of the board of directors.

Foreign Corporation

A company that is incorporated in one country but conducts business operations in another country.