Which of the Following Is True of Diversification

question 38

Multiple Choice

Which of the following is true of diversification?

• A) It is a substrategy of the retrenchment strategy.
• B) Concentric diversification is diversification into unrelated areas.
• C) It should be adopted by an organization facing major environmental threats with strong internal resources.
• D) It aims to make the product or service unique in its category, thus permitting the organization to charge higher-than-average prices.
• E) An organization that faces positive market opportunities but is constrained by relatively weak internal resources should adopt this strategy.

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Definitions:

Responsibility

The obligation or duty to act properly and make decisions that positively affect oneself and others.

Communication

The process of transferring information from one party to another through spoken words, written words, nonverbal cues, or other mediums.

Vertical Linkages

The hierarchical connections between different levels of an organization that ensure communication and coordination.

Horizontal Linkages

Interactions or connections between entities or individuals at the same level in an organization, fostering cooperation and communication.