Mary Barra, CEO of General Motors, Has Asked You to Evaluate

Mary Barra, CEO of General Motors, has asked you to evaluate the financial resource fit of its new autonomous (self-driving) vehicle and electric vehicle (EV) divisions. You would advise CEO Barra that a diversified company's business units exhibit good financial resource fit when

A) both new divisions are sufficiently profitable to generate an attractive return on invested capital.
B) the resource requirements of each new division exactly match the company's available resources.
C) GM has the resources to adequately support the requirements of its new divisions as a group without spreading itself too thin because these new divisions have the potential to add to GM's overall strengths.
D) each new division produces large internal cash flows over and above what is needed to build and maintain the business.
E) both new divisions present a cash drain on the legacy car and truck divisions of GM and should be managed more cost-effectively.