1. The rising ratio of diverstitures to new acquisitions that occurred in the past suggests that
A- too much diversification strained the operating capabilities of many firms
B- multinational firms are increasing considered high risky investiemtns
C- poison pills are no longer effectives as a defense a ganist takeover
D- the portofolio effect as been a highely successful method of reducing risk.
2. Prezas Company's balance sheet showed total current assets of $3,000, all of which were required in operations. Its current liabilities consisted of $975 of accounts payable, $600 of 6% short-term notes payable to the bank, and $250 of accrued wages and taxes. What was its net operating working capital?
a. $1,544
b. $1,775
c. $1,438
d. $1,935
e. $1,651