A Diversification Strategy Involves a Firm Moving into Only Those

question 119

True/False

A diversification strategy involves a firm moving into only those businesses which are unrelated to the firm's current core business.

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Definitions:

General Adaptation Syndrome

General Adaptation Syndrome is a three-phase response to stress identified by Hans Selye, including alarm, resistance, and exhaustion stages.

Stage of Exhaustion

Refers to the final phase of the General Adaptation Syndrome where the body is no longer able to resist stressors effectively, leading to depletion of energy and possible health issues.

Alarm Stage

The initial reaction of the body's stress response, marked by heightened awareness and mobilization of resources to confront a perceived threat.

ABC Approach

A behavioral management strategy focusing on Antecedent, Behavior, and Consequence to understand and modify behavior.