Management and Organizational Studies 2310A/B Lecture Notes - Lecture 8: Capital Market, Capital Gain, Technical Analysis

12) Perfectly competitive markets exist when a) b) there is no particular advantage to being a large supplier capital investment allows one supplier to satisfy much of the market customers demand national brands the government eliminates incentives for private profits d)

A diversified company's business units exhibit good financial resource fit when

A.the resource requirements of each business exactly match the company's available resources.

B.each business is a cash cow.

C.a company 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. each business is sufficiently profitable to generate an attractive return on invested capital.

D.each business unit produces large internal cash flows over and above what is needed to build and maintain the business.