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Why Would the Top-Level Managers at Nutzandboltz, a Hardware Company

Question 77

Multiple Choice

Why would the top-level managers at Nutzandboltz, a hardware company, decide to invest free cash flow in product lines such as clothing or toys?


A) To defend against a hostile takeover
B) To increase the level of diversification
C) To enhance executive compensation
D) To minimize managerial risk

Correct Answer:

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