Related Diversification Involves All of the Following Except

question 63

Multiple Choice

Related diversification involves all of the following except:

• A)having a high level of integration.
• B)maintaining small corporate headquarters staff.
• C)having the potential for divisional conflicts over resources.
• D)exploiting a core competence in a new domain.

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Definitions:

Unit Cost

The cost incurred to produce, manufacture, or acquire one unit of a product or service.

Economic Profits

Profits that exceed both the explicit and implicit costs of a business, including a normal return on investment.

Differentiate Products

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Interindustry Competition

The competition for sales between the products of one industry and the products of another industry.