Which of the Following Best Describes the Strategy of Diversification

question 34

Multiple Choice

Which of the following best describes the strategy of diversification?

• A) It requires a firm to enter a supplier's business.
• B) It requires a firm to move into new value chains.
• C) It requires a firm to enter a buyer's business.
• D) It requires a firm to get involved in new portions of the value chain.
• E) It requires a firm to sell its existing products in new markets.

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Definitions:

Condition Precedent

A condition under which the obligations of a contract will begin; also called “subject-to” clause.

Frustration

Interference with a contract by some outside, unforeseen event that makes performance impossible or essentially different in nature.

Equitable Remedy

A judicial order enforcing a party to act or refrain from acting in a certain way, used when monetary compensation does not suffice to resolve a legal dispute.

Frustration Clause

A frustration clause in a contract is a provision that releases both parties from their obligations if an unforeseeable event occurs, making it impossible to fulfill the contract.