The Essence of the Prevailing Theory of Diversification Is That

question 84

Multiple Choice

The essence of the prevailing theory of diversification is that firms should diversify when they:

• A) have market power in their industry and are market leaders.
• B) have control of tactical and strategic competitive actions.
• C) are market followers and have a secure niche.
• D) have excess resources,capabilities,and core competencies with multiple uses.

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Definitions:

Medium Of Exchange

is anything widely accepted as a means for payment of goods and services, facilitating trade by avoiding the limitations of barter.

Economic Efficiency

A state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Fiat Money

Money that is recognized as legal tender by a government, though it lacks backing by any tangible asset.

Fundamental

A basic, underlying factor or principle that is essential to the structure or function of a system or market.