Question

This news segment comes at a time when Alibaba was preparing to offer its stock to investors through the New York Stock Exchange. The company will raise funds through this process. This is important for the future of Alibaba's corporate-level strategy because:

a.The company will have to change its strategy to spend more money and become larger to support stockholders.

b.The company can only have business-level strategies once it is a member of the NYSE.

c.Free cash flow is utilized to fund a diversification strategy and having additional funds could support future investments.

d.Shareholders can provide unlimited funds without restrictions or input on corporate strategy.

Answer 1

C. Free cash flow is utilized to fund a diversification strategy and having additional funds could support future investments.