Which of the Following Statements Best Defines a Stability Strategy

question 26

Multiple Choice

Which of the following statements best defines a stability strategy?

• A) It is adopted by a company that plans to stay in its current businesses and intends to manage them as they are already being managed.
• B) It is used by companies that are adding new products, product lines, or businesses to their existing core products, product lines, or businesses.
• C) It occurs when an organization finds that its current operations are not effective.
• D) It can be pursued externally through mergers, joint ventures, and the acquisition of other businesses.

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Definitions:

Geometric Series

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Infinite

Without limit or end; extending beyond measure or comprehension.

Terms

Conditions and stipulations that are specified as part of an agreement or contract.

Rational Investor

An individual who makes decisions by maximizing expected utility, based on consistent preferences and available information.