Diversification into a new industry cannot be considered a success unless it results in
A) easing the means of entry.
B) boosting performance of the existing business.
C) lowered cost of entry.
D) enhanced industry attractiveness.
E) enhanced shareholder value.

Question

Quizplus · Accepted Answer

The ultimate goal of diversification into a new industry is to enhance shareholder value, which can be achieved through increased revenue, profitability, and overall growth. While easing the means of entry, boosting performance of the existing business, lowering costs of entry, and enhancing industry attractiveness are all potential benefits of diversification, they are not necessarily indicative of success unless they ultimately lead to enhanced shareholder value.

Diversification into a New Industry Cannot Be Considered a Success