It Becomes Particularly Urgent for a Company to Consider Diversification

question 119

Multiple Choice

It becomes particularly urgent for a company to consider diversification when there are

• A)opportunities to leverage existing competencies and capabilities by expanding into businesses where these same resources are key success factors and valuable competitive assets.
• B)diminishing market opportunities and stagnating sales in its principal business.
• C)opportunities to lower costs by entering closely related businesses.
• D)opportunities to transfer a powerful and well-respected brand name to the products of other businesses and thereby increase the sales and profits of these newly entered businesses.
• E)needs to avoid putting all of its "eggs" in one industry basket.

---

Definitions:

Body Mass Index

A numerical calculation using height and weight to estimate a person's body fat and assess their risk for diseases related to overweight or obesity.

Moderate-Intensity Exercise

A level of exercise that raises the heart rate to 50-70% of the maximum heart rate, improving cardiovascular health without excessive strain.

National Institutes of Health

A part of the U.S. Department of Health and Human Services; the primary federal agency for conducting and supporting medical research.

Body Mass Index

A measure of body fat based on height and weight that applies to adult men and women, used to categorize underweight, normal weight, overweight, and obesity.