Which of the Following Reasons Can Make a Diversification Strategy

question 26

Multiple Choice

Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?

• A) Steady industry conditions
• B) Varying firm-specific conditions
• C) Diversification for pooling risks
• D) Decreasing bureaucratic costs
• E) Greater differentiation of products

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Definitions:

Sustainable, Long-Term Growth

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Worthy Cause

A socially beneficial project or charity that people consider deserving of support, attention, or donation.

Marketing Efforts

Activities and strategies employed by companies to promote and sell their products or services.

Pollution Prevention Pays

An environmental strategy emphasizing the reduction or elimination of waste at the source rather than treating and disposing of waste after it is created.