The Option of Sticking with the Current Business Lineup Makes

question 84

Multiple Choice

The option of sticking with the current business lineup makes sense when

• A)the company's present businesses offer attractive growth opportunities and can be counted on to generate good earnings and cash flows for shareholders.
• B)companies are seeking multinational diversification.
• C)corporate executives are excited about market opportunities.
• D)corporate executives are satisfied with current performance of each of their businesses and can use redirect capabilities and resources for expansion opportunities.
• E)corporate executives want to divest some businesses and retrench to a narrower diversification base.

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Definitions:

Defined Contribution Pension Plan

A retirement plan where an employer, employee or both make contributions, with future benefits dependent on investment performance.

IRS Approved

Indicates that a financial arrangement or practice has been sanctioned or recognized by the Internal Revenue Service.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated on a formula including salary history and duration of employment, with the employer bearing investment risk.

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The resources set aside to meet future pension obligations, including investments and other assets.