Concentric Diversification Is Growth into Unrelated Businesses but May Be

question 65

True/False

Concentric diversification is growth into unrelated businesses but may be a very appropriate corporate strategy when a firm has a strong competitive position but industry attractiveness is low.

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Definitions:

NAL

Net Advantage to Leasing, a financial calculation to determine whether leasing an asset is more cost-effective than purchasing it.

International Accounting Standards

A set of accounting guidelines that dictate how financial transactions and statements should be recorded and reported across different countries.

IAS 17

An international accounting standard that provides guidance on the accounting and financial reporting of leases.

Unqualified Audit Report

An auditor's report that is issued when an auditor determines that all of the financial records provided by a company are free of material misstatement, indicating a clean bill of health.