An organizations board of directors is particularly focused on positioning the organization as a leader in the industry and beating the competition. Which of the following strategies offers the greatest alignment with the boards focus?

a. Divesting product lines expected to have negative profitability

b. Increasing the diversity of strategic business units

c. Increasing the investment in research and development for a new product

d. Relocating the organizations manufacturing

Which of the following best explains why an organization would enter into a capital lease contract?

a. To increase the ability to borrow additional funds from creditors

b. To reduce the organizations free cash flow from operations

c. To improve the organizations free cash flow from operations

d. To acquire the asset at the end of the lease period at a price lower than the fair market value