A fiRm That Wants to Offset the Risk Associated with Operating

question 66

Multiple Choice

A firm that wants to offset the risk associated with operating in a single product line would:

• A) acquire another firm that operates in the same stage of the production process.
• B) undertake a diversification growth strategy.
• C) increase the number of stages in its value chain.
• D) merge with firms that are at consecutive stages of the vertical chain.

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Definitions:

Environment

The natural world, including land, water, air, plants, and animals, as well as the physical and biological conditions affecting human life and society.

Feedback

Information provided about the result of a process or activity, used as a basis for improvement or adjustment.

Significant Other

A significant other is a term used to describe a person who plays a major or central role in an individual's life, often a romantic partner but can also include a close friend or family member.

Generalized Other

The generalized other is a concept in sociology that refers to the general notion that a person has of the common expectations and attitudes of the social group or society they are a part of.