The Fastest and Easiest Way for a Firm to Diversity

question 73

Multiple Choice

The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because:

• A) of barriers to entry in many industries.
• B) it is difficult and time intensive for companies to develop products that differ from their current product line.
• C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition.
• D) unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before acquisition.