Research Comparing Concentric with Conglomerate Diversification Concludes That

question 105

Multiple Choice

Research comparing concentric with conglomerate diversification concludes that

• A) conglomerate diversification is always less profitable than concentric diversification.
• B) concentric diversification is always less profitable than conglomerate diversification.
• C) the relationship between relatedness and performance follows an inverted U-shaped curve.
• D) neither concentric nor conglomerate diversification are ever profitable.
• E) for optimum effectiveness both conglomerate and concentric diversification should be utilized in tandem.

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Definitions:

Common Resources

Goods that are non-excludable and rival in consumption, such as fisheries, the atmosphere, or public parks.

Enjoyment

The state or experience of taking pleasure or satisfaction from something.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they derive from it.

Surplus

An excess of production or supply over demand, often leading to lower prices.