Provide the corporate parent with funds for reinvestment

Assignment Help Operation Management
Reference no: EM13904234

1. What is the business term given for a company that generates cash flows over and above its internal requirements and can provide the corporate parent with funds for reinvestment?

A. Cash hog.

B. Cash cow.

C. Cash flow.

D. Free cash flow.

2. The options for allocating a diversified company's financial resources include:

A. making acquisitions to establish positions in new businesses or to complement existing businesses.

B. investing in ways to strengthen or grow existing businesses.

C. funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses.

D. paying off existing debt, increasing dividends, building cash reserves, or repurchasing shares of the company's stock.

E. All of these.

3. Corporate strategy options for already diversified companies include:

A. broadening the company's business scope by making new acquisitions in new industries.

B. divesting weak-performing businesses and retrenching to a narrower base of business operations.

C. restructuring the company's business lineup with a combination of divestitures and new acquisitions to put a whole new face on the company's business makeup.

D. pursuing growth opportunities within the existing business lineup.

E. All of these.

4. When should a business be divested?

A. When the business is worth more to another company than to the parent company.

B. When the parent company would want to get into that business if it were not already in it.

C. When the business provides valuable strategic or resource fits for another company.

D. When shareholders would be better served if the company sells the business for a generous premium.

E. When the business lacks the cross-boundary presence of shared values and cultural compatibility.

5. The tests of whether a diversified company's businesses exhibit resource fit do NOT include:

A. whether the excess cash flows generated by cash cow businesses are sufficient to cover the negative cash flows of its cash hog businesses.

B. whether a business adequately contributes to achieving the corporate parent's performance targets.

C. whether the company has adequate financial strength to fund its different businesses and maintain a healthy credit rating.

D. whether the corporate parent has sufficient cash to fund the needs of its individual businesses and pay dividends to shareholders without having to borrow money.

E. whether the corporate parent has or can develop sufficient resource strengths and competitive capabilities to be successful in each of the businesses it has diversified into.

Reference no: EM13904234

Questions Cloud

Role of Project Management Office : Describe the importance of the Project Management Office (PMO). In your explanation, include answers to the following questions: What role does this office play in project management? What problems would an organization performing informal project ma..
How has the issue affected morale-teamwork or productivity : Describe an issue at work that you believe is performance related. How has the issue affected morale, teamwork, or productivity? Describe how you would like to see it resolved so that the organization might function better.
Enable the most communication between partners : what type of channel structure will enable the most communication between partners? Why? what type of channel structure will enable the richest ( most detailed, best information) communication between partners? Why?
Provide the corporate parent with funds for reinvestment : What is the business term given for a company that generates cash flows over and above its internal requirements and can provide the corporate parent with funds for reinvestment? The options for allocating a diversified company's financial resources ..
Case study on large company with global operation : Complete a case study on a large company with a global operation. In your case study, please illustrate your findings on the following: Management Structure, Analytics used for the decision-making
What are the optimal values of alpha and beta : Use the addictive seasonal technique for stationary data to model the data. Use solver to determine the optimal values of alpha and beta. What are the optimal values of alpha and beta? Prepare a line graph comparing the predictions from this method a..
Best buy state that meetings are optional : Best Buy's focus on ROWE highlights which part of the HR Planning Process? Given how this Best Buy employee is describing her work and how she balances it with her home life and her own energy patterns, one result of Best Buy's flexible working arran..
Historic average for the proportion of customers : Garcia's Garage desires to create some colorful charts and graphs to illustrate how reliably its mechanics? "get under the hood and fix the? problem." The historic average for the proportion of customers that return for the same repair within the? 30..

Reviews

Write a Review

Operation Management Questions & Answers

  Why incorporation is an effective idea for their business

Identify the reasons why incorporation is an effective idea for their business, the steps they must take to incorporate their business, and the steps they must take to dissolve the corporation once the 10 years has passed.

  Elucidate what should nancy bush do

she fears which the supervisors will be biased towards making the component in house, as they tend to favour retaining more work for their people. Elucidate what should Nancy Bush do.

  Planning to install pull system

Carlos Gonzalez is production manager at an assembly plant that manufacturers cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate of 50 pieces per hour. Each container is designed t..

  Meant by the term corporate social responsibility

What is meant by the term ‘corporate social responsibility’ as it applies to international logistics? Illustrate your answer by referring to the Probo Koala disaster and the issue of child labour in the Sialkot soccer ball industry

  The setup cost for the production of knobs is 60 the firm

a radio manufacturer uses 60000 knobs per year for its popular car stereo series. the firm makes its own knobs which it

  Given the demand probabilities during the lead time

Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without stock, is 200 chairs. Given the demand probabilities during the lead time, how much safety should..

  Complete a strategic plan for organization

Complete a strategic plan for organization of no more than 3500 words.

  Describe a product development or management process

You must research and describe a product development or management process, methodology, or a model that could be utilized to implement the innovation. You should select and use one of these models for developing its own implementation plan.

  What is the breakeven order size

The process engineer at Strowbridge Metal Works has the choice of machining a particular part on either of two machines. Orders for this part are received regularly, but the order sizes varies. What is the breakeven order size?

  What are the benefits of developing a responsibility

Why do you think a project needs a champion? Do you believe that being a project champion might be the path to senior management in today's business world? Defend your answer.

  Identify the three types of costs

Identify the three types of costs when quality considerations are made. Explain each of these types of costs using examples

  Seven spiritual values

The Japanese firm Matsushita has a business philosophy from the strong founder Konosuke. This business philosophy was codified as the "Seven Spiritual Values" of Matsushita that all employees learn today.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd