Diversifying into new businesses can be considered a success only if it
A)results in increased profit margins and bigger total profits.
B)builds shareholder value.
C)helps a company escape the rigors of competition in its present business.
D)leads to the development of a greater variety of distinctive competencies and competitive capabilities.
E)helps the company overcome the barriers to entering additional foreign markets.

Question

Quizplus · Accepted Answer

Diversifying into new businesses is considered successful if it builds shareholder value, as this indicates the company's overall worth is increasing, benefiting its owners or shareholders.

Diversifying into New Businesses Can Be Considered a Success Only