A diversified company's business units exhibit good financial resource fit when
A) it has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company's overall strengths.
B) cash cow businesses are sufficient to fund its needs to turn cash hogs into potential young stars.
C) self-supporting stars are able to plow their cash flows into funding cash cows.
D) each business is sufficiently profitable to generate an attractive return on invested capital.
E) each business unit produces large internal cash flows over and above what is needed to build and maintain the business.
Correct Answer:
Verified
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