Which of the Following Is a Defining Characteristic of Growth

question 132

Multiple Choice

Which of the following is a defining characteristic of growth through diversification?

• A) It involves extending business within the same business area.
• B) It involves acquisition of or investment in new and different business areas.
• C) It involves decreasing the size of operations.
• D) It involves selling company assets to pay creditors.
• E) It involves fixing specific performance problems.

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Definitions:

Consideration

The thoughtfulness and sensitivity shown towards others, often part of leadership qualities that include respect and empathy.

Employees

Individuals who are hired by a company or organization to perform specific duties in exchange for payment.

LMX

Leader-Member Exchange, a theory focusing on the two-way relationship between supervisors and subordinates, emphasizing dyadic relationships.

Social Exchange Theory

A theoretical perspective that views social relationships as transactions where individuals seek to maximize their benefits while minimizing their costs.