Besides financial cash flow considerations,there are two other factors to consider in assessing whether a diversified company's businesses exhibit good financial fit,namely:
A) does each of the businesses adequately contribute to achieving company-wide performance targets and does the corporation have adequate financial strength to fund its different businesses.
B) does each of the businesses operate in sound financial manner and can they provide a continuing earnings stream.
C) does each of the businesses generate sufficient free cash flow to operate and can they successfully manage their business model independently.
D) does each of the businesses when combined provide synergistic benefits and can they maintain the synergy savings over time.
E) All of these.
Correct Answer:
Verified
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