Walt Disney Company and Johnson & Johnson Are Examples of Companies

question 135

Multiple Choice

Walt Disney Company and Johnson & Johnson are examples of companies that have successfully used related diversification to create value by ________________.

• A) sharing activities
• B) sharing activities and transferring core competencies
• C) transferring core competencies
• D) efficient internal capital allocation and restructuring

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Definitions:

Perfectly Inelastic

Describing a situation where demand or supply does not change in response to changes in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Price Elasticity

Quantifying the demand shift for an item in response to its price adjustments.

Responsiveness

The ability or tendency of an entity or system to react to changes, stimuli, or feedback from the environment.