Which One of the Following Is Not Part of the Task

question 78

Multiple Choice

Which one of the following is not part of the task of checking a diversified company's business lineup for adequate resource fit?

• A) Determining whether the excess cash flows generated by cash cow businesses are sufficient to cover the negative cash flows of its cash hog businesses
• B) Determining whether recently acquired businesses are acting to strengthen a company's resource base and competitive capabilities or whether they are causing its competitive and managerial resources to be stretched too thinly
• C) Determining whether business units offer opportunities to transfer skills or technology or intellectual capital from one business to another
• D) Determining whether the company has adequate financial strength to fund its different businesses and maintain a healthy credit rating
• E) Determining whether the corporate parent has or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into

---

Definitions:

Innate Reactions

Natural, instinctual responses present at birth that do not have to be learned, such as reflexes or basic drives.

Cognitive Interpretation

The process by which individuals perceive, comprehend, and interpret information mental.

Need For Achievement

A psychological characteristic that drives individuals to strive for success in tasks where they are evaluated against some standard of excellence.

Maximise

To increase or make as great as possible.