FINM7006 Review Lecture 1. How Is Preferred Stock Like Equity And How Is It Like Long-Debt?

BPL 5100chapter 7

Chapter 7

1) A firm implements a corporate diversification strategy when it operates in multiple industries or markets simultaneously.

Answer: 

Diff: 1

Learning Obj.:  7.1: Define Corporate Diversification and Describe Five Types of Corporate Diversification

AACSB:  Analytical Thinking

2) When a firm operates in multiple industries simultaneously it is said to be implementing a geographic market diversification strategy.

Answer: 

Diff: 1

Learning Obj.:  7.1: Define Corporate Diversification and Describe Five Types of Corporate Diversification

AACSB:  Analytical Thinking

3) When a firm operates in multiple geographic markets simultaneously it is said to be implementing a product diversification strategy.

Answer: 

Diff: 1

Learning Obj.:  7.1: Define Corporate Diversification and Describe Five Types of Corporate Diversification

AACSB:  Analytical Thinking

4) A firm has implemented a strategy of limited corporate diversification when all or most of its business activities fall within a single industry and geographic market.