Which of the Following Actions Would Best Illustrate a Diversification

question 90

Multiple Choice

Which of the following actions would best illustrate a diversification strategy for McDonald's (the fast food restaurant)

• A)adding a line of new deli sandwiches to the menu of existing McDonald's stores
• B)running a promotion based on the Monopoly game, whereby customers have a chance to win prizes with each purchase
• C)opening the first McDonald's in China
• D)developing a line of McDonald's toys to be sold through Toys R Us stores

---

Definitions:

Economic Value

The value of an asset deriving from its ability to generate income or utility.

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting its depreciation or amortization schedules.

Operating Costs

The expenses associated with the day-to-day operations of a business, including costs of goods sold, salaries, and administrative expenses.

Injection Mold

A manufacturing process for producing parts by injecting molten material into a mold.