Directions: Read pages 189-221 in the Desai textbook and answer the following. 1

Directions: Read pages 189-221 in the Desai textbook and answer the following.
1. The two primary methods of capital allocation are to a) retain/reinvest (pp. 190-196) or b) distribute to shareholders (pp. 197-202). Describe one benefit and one drawback of each option.
2. What is a conglomerate? Name two benefits and two drawbacks of conglomerates. (pp. 194-197)
3. List the six major mistakes made in capital allocation (pp. 208-210). Then, read the “Shareholder Revolt against Apple” case and indicate which of the mistakes was most evident. (pp. 216-218)