Company Leaders That Base Their Diversification Strategy on Transferring Competencies

question 15

Multiple Choice

Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are ____ to their existing business activities.

• A) unrelated
• B) not comparable
• C) opposed
• D) related
• E) identical

---

Definitions:

Demand Curves

Graphs that show the relationship between the price of a product and the quantity of the product demanded.

Income Effect

The change in an individual's or economy's consumption patterns due to a change in real income.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The modification of income for people or economies and how this adjustment affects their purchasing desires for goods or services.