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

question 91

Multiple Choice

A diversified company's business units exhibit good financial 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 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 company's available resources.

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