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Smart Products Suppose Smart Products Has Three Divisions Which Contribute 40, 35

Question 6

Multiple Choice

Smart Products
Suppose Smart Products has three divisions which contribute 40, 35, and 25 percent each to its revenues.
-Now suppose Smart Products acquires a competitor of one of its divisions and the new shares of revenues are 60,25,and 15 percent.Is Smart Products more or less focused?


A) less focused; the HI increases to 0.445
B) less focused; the HI decreases to 0.25
C) more focused; the HI decreases to 0.25
D) more focused; the HI increases to 0.445

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