Diversifying into new businesses is justifiable 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.
Correct Answer:
Verified
Q7: To create value for shareholders via diversification,
Q9: A company can best accomplish diversification into
Q10: Diversification becomes a relevant strategic option in
Q11: Internal development of a new business subsidiary
Q12: Which one of the following is not
Q13: Diversification becomes a relevant strategic option when
Q15: Diversification merits strong consideration whenever a single-business
Q15: The better-off test for evaluating whether a
Q19: Diversification ought to be considered when
A) a
Q29: Acquisition of an existing business is an
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