Which of the following is NOT a reasonable option for deploying a diversified company's financial resources?
A) making acquisitions to establish positions in new businesses or to complement existing businesses
B) investing financial resources in cash cow businesses until they show enough strength to generate positive cash flows
C) funding long-range R&D ventures aimed at opening market opportunities in new or existing businesses
D) paying down existing debt, increasing dividends, or repurchasing shares of the company's stock
E) investing in ways to strengthen or grow existing businesses

Question

Quizplus · Accepted Answer

Investing financial resources in cash cow businesses until they show enough strength to generate positive cash flows is not a reasonable option for deploying a diversified company's financial resources. This is because cash cow businesses are typically mature and stable, and they may not offer growth opportunities that can help the company maximize its financial resources. Instead, companies should focus on investing in new or existing businesses that have the potential for growth and market share expansion.

Which of the Following Is NOT a Reasonable Option for Deploying