Conditions That May Make Corporate Restructuring Strategies Appealing Include All

question 74

Multiple Choice

Conditions that may make corporate restructuring strategies appealing include all of the following except

• A)ill-chosen acquisitions that have not lived up to expectations.
• B)an excessive debt burden with interest costs that eat deeply into profitability.
• C)ongoing declines in the market shares of one or more major business units that are falling prey to more market-savvy competitors.
• D)a business lineup that consists of too many slow-growth,declining,low-margin,or competitively weak businesses.
• E)a business lineup that consists of too many cash cow businesses.

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Definitions:

Inventory

The total amount of goods that a company holds, intending to sell them in the normal course of business.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Cash Flow

The total volume of financial transfers happening within a business, crucially affecting its ability to handle financial obligations.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specified period.