A Strategy Based on Diversification May Fail to Add Value

question 52

Multiple Choice

A strategy based on diversification may fail to add value because companies:

• A) seek to achieve differentiation instead of low cost.
• B) diversify into areas in which they have some knowledge and miss out on profitable opportunities in other areas.
• C) make acquisitions rather than develop new technologies on their own.
• D) incur bureaucratic costs that exceed the value created by the strategy.
• E) seek to achieve a low-cost position instead of differentiation.

Trace the historical connection between work, identity, and the pursuit of a meaningful life to the onset of industrialization.

Describe the impact of modern capitalism's short-term thinking on personal character as identified by Richard Sennett.

Discuss the challenges to job security posed by the global political and economic environment.

Define "meaningful work" within the context of social norms rather than specific job roles.

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Definitions:

Compounded Semi-annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied twice a year.

Amortization Period

Refers to the total time taken to pay off a debt in regular installments until the loan amount and interest are paid in full.

Compounded Semi-annually

The method of determining interest by adding it to both the original amount of money deposited or borrowed and the interest that has already been added over two periods within a year.

Amortization

The process of paying off a debt over time through regular payments.