External Incentives to Diversify Include

question 31

Multiple Choice

External incentives to diversify include:

• A)the fact that other firms in an industry are diversifying
• B)pressure from stockholders who are demanding that the firm diversify
• C)the government's antitrust and tax laws
• D)a firm's low performance

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Definitions:

Gigantic Corporation

A term used to describe extremely large and influential multinational corporations, often with significant power over markets and economies.

Successful Innovations

Novel ideas, products, or technologies that have been successfully developed and accepted in the market, leading to commercial success or widespread adoption.

Monopolistic Competitors

Firms considered monopolistic competitors offer varied, yet somewhat substitutable, products to consumers, enabling them to have some degree of market power in their respective industries.

R&D

Stands for Research and Development; it is the investigative work a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.