In which of the following instances is retrenching to a narrower diversification base not likely to be an attractive or advisable strategy for a diversified company?
A) When a diversified company has businesses that are weakly positioned in their respective industries and are struggling to earn a decent return on investment
B) When a diversified company has too many cash cows
C) When one or more businesses are cash hogs with questionable long-term potential
D) When businesses in once-attractive industries have badly deteriorated
E) When a diversified company has businesses that have little or no strategic or resource fits with the core businesses that management wishes to concentrate on
Correct Answer:
Verified
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