Which of the Following Is Not a Value- Creating Reason

question 17

Multiple Choice

Which of the following is not a value- creating reason for diversification?

• A) A diverse range of products/services can diffuse management effort
• B) A diverse range of products/services can increase market power
• C) Gains from applying corporate managerial capabilities to new markets and products/services
• D) Efficiency gains from applying existing resources and competences to new markets and products/services
• E) Need to respond to environmental change

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Definitions:

Operations Management Decisions

Decisions related to the processes that create and deliver a company's products or services, including decisions on production, inventory, quality, and logistics.

Resource Acquisition

The process of identifying, obtaining, and allocating the necessary resources, such as human, financial, or material, to achieve organizational goals.

Inventories

Quantities of goods or materials that a business holds for the purpose of sale or production.

Facilities

Physical resources such as buildings or equipment provided for a particular purpose.