The One Factor That Is Not Relevant for Company Managers

question 73

Multiple Choice

The one factor that is not relevant for company managers to worry about when their company has many unrelated firms,especially when they are very diverse is to

• A) stay abreast of what's happening in each industry and subsidiary.
• B) pick business-unit heads having requisite combination of managerial skills and know-how to motivate people.
• C) understand the true value of strategic investment proposals by business-unit managers.
• D) know what to do if a business unit stumbles.
• E) rely on the skills and expertise of business-level managers to build competitive advantage.

---

Definitions:

Illegal Dividend

A dividend declared and distributed by a company when it is not legally permissible to do so, either due to financial insolvency or violation of statutory requirements.

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the company's stock and potentially benefiting from its profits in the form of dividends.

Preemptive Right

A shareholder’s option to purchase new issuances of shares in proportion to the shareholder’s current ownership of the corporation.

Model Business Corporation Act

A set of model laws prepared to assist states in drafting legislation to regulate the formation and operation of corporations.