Diversification Analysis Refers to

question 181

Multiple Choice

Diversification analysis refers to

• A) a technique that seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.
• B) a framework to relate the market segments of potential buyers to products offered or potential marketing actions by an organization.
• C) a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products.
• D) a technique used to determine the appeal of each SBU or offering and then the amount of cash, if any, each should receive.
• E) a framework that identifies four "generic" strategies to achieve a competitive advantage.

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Definitions:

Write-Down

A reduction in the book value of an asset when its market price falls below its carrying value on the balance sheet.

Gross Profit

The difference between revenue and the cost of goods sold, representing the basic profitability of the products or services sold by a company.

Pretax Income

The income of a business before income taxes are deducted.

Understated

Describes a financial statement element that is reported at a figure less than its actual value, potentially misleading users of the statements.