Deploying a diversified company's financial resources would normally not involve
A)making acquisitions to establish positions in new businesses or to complement existing businesses.
B)investing financial resources in cash cow businesses until they show enough strength to generate positive cash flows.
C)funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses.
D)paying down existing debt, increasing dividends, or repurchasing shares of the company's stock.
E)investing in ways to strengthen or grow existing businesses.

Question

Quizplus · Accepted Answer

Investing financial resources solely in "cash cow" businesses, which are already generating positive cash flows, would not involve deploying diversified company's financial resources. The other options, including acquiring new businesses, funding R&D projects, paying down debt, increasing dividends, repurchasing shares of stock, and investing in existing businesses, all involve deploying financial resources in a diversified manner.

Deploying a Diversified Company's Financial Resources Would Normally Not Involve