A Comprehensive Evaluation of the Group of Businesses a Company

question 56

Multiple Choice

A comprehensive evaluation of the group of businesses a company has diversified into involves

• A) evaluating the attractiveness of industries the company has diversified into and the competitive strength of each of its business units.
• B) evaluating the strategic fits and resource fits among the various sister businesses.
• C) ranking the performance prospects of the businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its various businesses.
• D) using the results of the prior analytical steps as a basis for crafting new strategic moves to improve the company's overall performance.
• E) All of the above.

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Definitions:

Petty Cash Receipt

A petty cash receipt is a document used to record small cash payments for minor expenses, part of a system to manage incidental or minor office costs.

Petty Cash Account

A small amount of cash kept on hand for making immediate payments for miscellaneous small expenses.

Compensating Balance

A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts.

Petty Cash Fund

A special cash fund to pay relatively small amounts.