Which of the Following Is NOT a Guideline for When

question 4

Multiple Choice

Which of the following is NOT a guideline for when an organization should use an unrelated diversification strategy?

• A) when revenues derived from an organization's current products or services would increase significantly by adding the new unrelated, products
• B) when an organization's present channels of distribution can be used to market the new products to current customers
• C) when the new products have countercyclical sales patterns compared to an organization's present products
• D) when an organization competes in a highly competitive and/or a no-growth industry
• E) when existing markets for an organization's present products are not yet saturated

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Definitions:

Substantial Performance

Refers to a situation where a party has completed most of a contract's terms, fulfilling enough of the contract to warrant payment, though some minor elements may still be needed.

Complete Performance

Complete Performance refers to the full and exact execution of all terms and obligations as outlined in a contract or agreement, leaving no duties unfulfilled.

Tender

An offer to perform an obligation or supply goods at a fixed price.

Condition Subsequent

A condition in a contract that, if it occurs, terminates an already established right or obligation.