MGTA01H3 : chpt 1 and 2

16) Entrepreneurs are important because they: a) b) provide all of the capital to start new businesses are good at making decisions assemble and organise the resources to start new businesses are good managers

Entrepreneurs are important because they a) provide all of the capital to start new businesses assemble and organise the resources to start new businesses both a and b are true. neither a norb is true.

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.