A Company Should Pursue Unrelated Diversification Instead of Related Diversification

question 14

Multiple Choice

A company should pursue unrelated diversification instead of related diversification when:

• A) its core skills are highly specialized and have few applications outside its core business.
• B) the company's top managers are skilled at acquiring and turning around poorly run enterprises.
• C) its core technological skills are applicable to a wide variety of industrial and commercial situations.
• D) it wants to maximize growth.
• E) the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope.

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Definitions:

Proposals

Documents or presentations that offer a solution, service, or project plan for consideration or acceptance by others.

Competition

The rivalry between entities to achieve superiority in a specific area or to attain a particular goal.

Reader

An individual who engages with and interprets written text for information, pleasure, or education.

Compelling Links

Hyperlinks that entice clicks by promising value-rich content or crucial information on the other side.