TechnoSol Ltd

question 95

Multiple Choice

TechnoSol Ltd. produces solar heating devices, including solar panels. The company decides to pursue an unrelated diversification corporate-level strategy when it buys

• A)the retail stores that sell its solar panels.
• B)the metal supplier for its solar panels.
• C)a company that produces athletic gear, including basketball shoes.
• D)a company that produces heating equipment, including furnaces.

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Definitions:

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.

Scienter

A legal term referring to the knowledge of the wrongdoing or fraudulent intent in committing an act.

Liability Defense

Liability Defense refers to legal strategies and arguments used to reduce or negate a party's responsibility for a claim or lawsuit.

Insider

An individual with access to confidential or non-public information about a company, often used in the context of insider trading.