A Diversified Company's Business Units Exhibit Good Resource Fit When

question 44

Multiple Choice

A diversified company's business units exhibit good resource fit when

• A)each business is a cash cow.
• B)a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall resource strengths.
• C)each business is sufficiently profitable to generate an attractive return on invested capital.
• D)each business unit produces large internal cash flows over and above what is needed to build and maintain the business.
• E)the resource requirements of each business exactly match the resources the company has available.

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Definitions:

Frequency

The rate at which a recurring event happens, typically measured over a particular period of time.

Amplitude

The maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Size Constancy

The perceptual understanding that an object's size does not change, despite variations in the distance from the observer, ensuring a consistent perception of size.

Frequency

The rate at which a vibration occurs that constitutes a wave, either in a material (as in sound waves) or in an electromagnetic field (as in radio waves and light).