Answer:
They're often used at many companies and businesses because instead of other formats it is very conclusive because you can clearly see the differences of all the numbers in it. They're right next to each other and they are easy to add information to. There is no need for any extra information and there is just enough evidence in everything for just the numbers.
The disadvantage of related diversification is that firms are able to look for promising investment opportunities for future profit, which means option B is the right answer.
Diversification is the act of inducing more branches of a business to expand it in the preexisting operations in areas where it is not present. Related diversification enhances shareholder value by taking control over cross-business strategic fits. It enables transfer of skills and capabilities from one business to another. It causes a combination of new resources to produce batter capacities and capability. Related diversification can allow a firm to share and transfer critical success factors across different businesses leading to efficiencies in resource allocation. The disadvantages are often too optimistic and are harder to manage. Also, several significant barriers are present which actually capitalize on shared synergies and related diversification is often overvalued.
Learn more about Diversification at:
brainly.com/question/1364836
#SPJ4
Answer:
a. The change in Accounts Receivable is added to net income; the change in Inventory is added to net income.
Explanation:
Operating activities: It includes those transactions which affect the working capital . The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added to the net income
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
