lin550
lin550
28.08.2020 • 
Business

Which one of the following is not part of the task of checking a diversified company's business? A. Determining which business units have value chain match-ups that offer opportunities to transfer competitively valuable resources/capabilities from one business to another and which business lack such opportunities (and therefore have inadequate resource fit).
B. Determining whether one or more businesses soak up a disproportionate share of the corporate parent's financial resources, make subpar or inconsistent bottom-line contributions, are too small to make a material earnings contribution, or are unduly risky (such that the financial well-being of the whole company could be jeopardized in the event such businesses fall upon hard times).
C. Determining whether the corporate parent's resources and parenting capabilities are poorly matched to the needs/requirements of one or more of the businesses it has diversified into.
D. Determining whether the company has adequate financial strength to fund its different businesses, pursue growth via new acquisitions, and maintain a healthy credit rating.
E. Determining whether the company's resources and capabilities are being stretched too thinly by the resource/capability requirements of one or more of its businesses.

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