As a Rule,all the Industries Represented in a Diversified Company's

question 12

Multiple Choice

As a rule,all the industries represented in a diversified company's business portfolio should be judged on such attractiveness factors as

• A) market size and projected growth rate.
• B) emerging opportunities and threats, the intensity of competition, and the degree of industry uncertainty and business risk.
• C) resource requirements and the presence of cross-industry strategic fits.
• D) seasonal and cyclical factors, industry profitability, and whether an industry has significant social, political, regulatory, and environmental problems.
• E) All of these.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets, without selling inventory.

Liquidity

The ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Asset Management

The process of effectively managing and investing in assets to increase their value or yield.