The Cherrywood Fine Furniture Company finds itself with excess capacity in its plant and equipment for furniture manufacturing. This excess capacity will be useful in:

Question

Quizplus · Accepted Answer

Excess capacity in plant and equipment for furniture manufacturing can be used in related diversification projects, where the company can expand its product lines or enter into related industries. This will enable them to use their existing resources and capabilities to generate additional revenue. Unrelated diversification or corporate restructuring would not necessarily require the use of excess capacity in furniture manufacturing, while multipoint competition refers to a competitive strategy rather than a utilization of excess capacity.

The Cherrywood Fine Furniture Company Finds Itself with Excess Capacity