Diversifying into New Businesses Can Be Considered a Success Only

question 112

Multiple Choice

Diversifying into new businesses can be considered a success only if it

• A)results in increased profit margins and bigger total profits.
• B)builds shareholder value.
• C)helps a company escape the rigors of competition in its present business.
• D)leads to the development of a greater variety of distinctive competencies and competitive capabilities.
• E)helps the company overcome the barriers to entering additional foreign markets.

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Definitions:

Nonmanagerial Subordinates

Employees who do not have managerial responsibilities and typically report to managers or supervisors.

First-line Management

Managers at the lowest level of an organization who directly supervise and support frontline employees.

Return on Investment

A measure of the profitability of an investment, calculating the ratio of net profits to initial investment costs.

Employee Training

Educational programs and activities designed to enhance the skills, knowledge, and performance of employees.