A Company Should Pursue Unrelated Diversification Instead of Related Diversification

question 14

Multiple Choice

A company should pursue unrelated diversification instead of related diversification when

• A) its core skills are highly specialized and have few applications outside core business.
• B) the company's top management is skilled at acquiring and turning around poorly run enterprises.
• C) its core technological skills are applicable to a wide variety of industrial and commercial situations.
• D) it wants to maximize growth.
• E) the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope.

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Definitions:

Nerve

A group of nervous tissues bound together for the purpose of conducting nervous impulses.

Combining Form

In linguistics and lexicology, a form of a word that combines with another form to create a new word or term, often used in the creation of technical or medical terms.

Egg

An organic vessel containing the zygote in which an embryo develops until it can survive on its own; also, a common food item rich in protein.

Oophor/o

Oophor/o is a prefix related to the ovary or ovaries, utilized in medical terms.