Which of the Following Is a Value-Reducing Reason for Diversification

question 43

Multiple Choice

Which of the following is a value-reducing reason for diversification?

• A)enhancing the strategic competitiveness of the entire company
• B)expanding the business portfolio in order to diversify managerial employment risk
• C)gaining market power relative to competitors
• D)conforming to antitrust regulation

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Definitions:

Socially Responsible

Refers to individuals or organizations behaving in an ethical and sensitive manner towards social, cultural, economic, and environmental issues.

Customer Retention

The activities and actions companies take to reduce the number of customers leaving or switching their service or product.

Social Responsibility Programs

Initiatives undertaken by corporations to address and take responsibility for their effects on environmental and social wellbeing.

Media Relations

The practice of managing and cultivating a positive relationship between an organization and the media to promote favorable coverage.