When a Company Decides to Expand into New Industries, It

question 41

Multiple Choice

When a company decides to expand into new industries, it must:

• A) develop a "multibusiness model" that justifies its entry into different businesses.
• B) halt marketing activities in the current industry to avoid being associated with one specific industry.
• C) select a new CEO and reappoint the board of directors.
• D) create one common business model for all the industries rather than each business unit.
• E) avoid talking about ways of increasing profitability in the business model.

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Definitions:

Acquired Immunodeficiency Syndrome

A chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) which damages the immune system.

Negligence

A medical professional’s failure to perform an essential action or performance of an improper action that directly results in the harm of a patient.

Breach of Contract

A legal term describing a violation of the terms of a contract without lawful excuse, which may result in legal consequences.

Direct Cause

An immediate factor or event that directly leads to an outcome or effect.