As the Threat of Corporate Failure Increases Due to Relatedness

question 83

Multiple Choice

As the threat of corporate failure increases due to relatedness between a firm's business units, firms may decide to:

• A) increase the firm's level of retained resources.
• B) diversify into less risky environments.
• C) reduce the level of diversity in its investments.
• D) pursue unproven product lines.

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Definitions:

Bad Events

Negative occurrences or experiences that can induce stress, trauma, or emotional distress in individuals.

Pessimistic Explanatory Style

A tendency to explain negative events in a way that attributes them to stable, internal, and global causes.

Interpret Bad Events

The cognitive process of explaining and assigning meaning to negative occurrences or adversity.

Big Five Personality Traits

A theoretical model of personality that includes five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism, structuring human personality.