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:

Oxygen

A chemical element with symbol O and atomic number 8, essential for most forms of life to breathe.

Nonpoint Source

Pollution originating from diffuse areas rather than identifiable, discrete sources.

Logged Area

A region where trees have been cut down for timber or forestry purposes, often leading to changes in the ecosystem.

Sewage Treatment

The process of removing contaminants from wastewater, primarily from household sewage, to produce an environmentally safe fluid waste stream and a solid waste suitable for disposal or reuse.