The options for allocating a diversified company's financial resources include all of the following EXCEPT
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 and building cash reserves.
E) decreasing dividend payments and/or selling shares of stock.

Question

Quizplus · Accepted Answer

The question asks for an option that is NOT included in the allocation of a diversified company's financial resources. The options listed include making acquisitions, investing in existing businesses, funding R&D ventures, and paying off debt/building cash reserves. Option E, decreasing dividend payments and/or selling shares of stock, is not listed and therefore is the correct answer.

The Options for Allocating a Diversified Company's Financial Resources Include