Successful Unrelated Diversification Through Restructuring Is Typically Accomplished By

question 26

Multiple Choice

Successful unrelated diversification through restructuring is typically accomplished by:

• A) focusing on mature, low-technology businesses.
• B) a "random walk" of good luck in picking firms to buy.
• C) seeking out high technology firms in high-growth industries.
• D) a top management team that is not constrained by preestablished ideas of how the firm's portfolio should be developed.

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Definitions:

Rescission

The act of revoking, canceling, or repealing a contract or agreement, returning all parties to their original positions prior to the agreement.

Misrepresentation

Misrepresentation involves giving incorrect information by one individual to another, persuading the latter to enter into a contract based on that faulty information, unintentionally leading to misconceptions during agreement formulation.

Insurance Policy

A contract between an insurer and a policyholder specifying the terms for the payment of claims in the event of a loss.

Contracted

Contracted generally means to have entered into a formal agreement with specific terms and conditions.