When an Organization Enters a New Type of Industry, Which

question 78

Multiple Choice

When an organization enters a new type of industry, which is not similar in any way to the current businesses of the organization, it is engaged in

• A)concentration on a single business.
• B)unrelated diversification.
• C)international expansion.
• D)related diversification.

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Definitions:

Financial Accounting

The field of accounting that focuses on providing information to external users such as investors, creditors, and regulators, primarily through financial statements.

GAAP

A set of widely accepted accounting norms and standards, referred to as Generally Accepted Accounting Principles, for the preparation of financial statements.

Line Positions

Roles in an organization directly involved in its core activities and responsible for achieving its primary objectives, as opposed to support or administrative positions.

Vice President

An officer in a company or institution, ranking below a president and typically responsible for a specific department or function.