A company that is already diversified may choose to broaden its business scope by building positions in new related or unrelated businesses because of all of the following considerations except
A) its top management seeks to lessen the company's vulnerability to seasonal or recessionary influences or to threats from emerging new technologies,legislative regulations,and new product innovations that alter buyer preferences and resource requirements.
B) its top management wants to increase its compensation.
C) its top management wants to make new acquisitions to strengthen or complement some of its present businesses,market positioning,and competitive capabilities.
D) the company's growth is sluggish and it wants the sales and profit boost that a new business can provide.
E) it has resources or capabilities that are eminently transferable to other related or complementary businesses.
Correct Answer:
Verified
Q81: Identify and briefly describe the six steps
Q92: Divestiture can be accomplished by
A)purchasing a business
Q93: Corporate restructuring strategies
A)involve making radical changes in
Q98: Conditions that may make corporate restructuring strategies
Q99: The option of sticking with the current
Q101: Carefully explain the difference between a strategy
Q105: What factors should management consider when ranking
Q108: Explain the difference between a cash cow
Q111: An additional, and often very important motivating
Q117: The attractiveness test is the most important
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents