A Firm Follows A(n) ________ When Less Than 70 Percent

question 84

Multiple Choice

A firm follows a(n) ________ when less than 70 percent of its revenues come from a single business and there are few, if any, linkages among its businesses.

• A) related-constrained strategy
• B) unrelated diversification strategy
• C) differentiation strategy
• D) dominant-business strategy

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Definitions:

Recommendations

Advice given by analysts or experts on buying, holding, or selling stocks or other securities.

Liquidity

The ease with which an asset can be quickly bought or sold in the market without affecting its price.

Small-Firm Effect

The observed phenomenon that, on average, smaller firms have historically provided higher risk-adjusted returns than larger firms.

Book-To-Market Effect

The tendency for securities with high book-to-market ratios to outperform those with low ratios.