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For a Mature Firm, a Poorly Planned or Executed Expansion

Question 39

Multiple Choice

For a mature firm, a poorly planned or executed expansion can be a problem for the business for which of the following reasons?


A) Diversification across different product lines lowers risk.
B) The entrepreneur can lose focus on his (or her) profitable products or markets.
C) An expansion into unprofitable products can drain valuable cash from the business.
D) The entrepreneur can lose focus on his (or her) profitable products or markets and an expansion into unprofitable products can drain valuable cash from the business.
E) All of the answers are correct.

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