The Fastest and Easiest Way for a Firm to Diversity

question 73

Multiple Choice

The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because:

• A) of barriers to entry in many industries.
• B) it is difficult and time intensive for companies to develop products that differ from their current product line.
• C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition.
• D) unrelated acquisitions are usually uncomplicated because the acquired firm is allowed to continue to function independently as it did before acquisition.

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Definitions:

Acromioclavicular Joint

A joint at the top of the shoulder, where the acromion (part of the scapula) meets the clavicle (collarbone), facilitating shoulder movement.

Coracoid Process

A small hook-like structure on the lateral edge of the superior anterior portion of the scapula (shoulder blade).

Medial Cuneiform

One of the bones in the foot, located in the medial side of the midfoot, contributing to the arch of the foot.

Scaphoid Bone

One of the carpal bones in the wrist, located on the thumb side, playing a key role in wrist movement and stability.