The Fastest and Easiest Way for a Firm to Diversity

question 7

Multiple Choice

The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because:

• A) of barriers to entry in many industries.
• B) it is difficult and time intensive for companies to develop products that differ from their current product line.
• C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition.
• D) unrelated acquisitions are usually uncomplicated since the acquired firm is allowed to continue to function independently as it did before acquisition.

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Definitions:

MDMA

A psychoactive drug, popularly known as ecstasy, that has stimulant and hallucinogenic effects.

Sedation

The process of using medication to relax, calm, or induce sleep in an individual, often used in medical procedures.

Coca Plants

Plants native to South America, the leaves of which are used in the manufacture of cocaine.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its euphoric effects.