A Diversified Company's Business Units Exhibit Good Financial Resource Fit

Multiple Choice

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

A) each business is sufficiently profitable to generate an attractive return on invested capital.
B) the resource requirements of each business exactly match the company's available resources.
C) 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.
D) each business unit produces large internal cash flows over and above what is needed to build and maintain the business.
E) each business is sufficiently profitable to generate an attractive return on invested capital