Should a Company Pursue an Unrelated Diversification Strategy, the Types

question 18

Multiple Choice

Should a company pursue an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets would be

• A)struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.
• B)companies offering the biggest potential to reduce labor costs.
• C)cash cow businesses with excellent financial fit.
• D)companies that are market leaders in their respective industries.
• E)companies that employ the same basic type of competitive strategy as the parent corporation's existing businesses.

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Definitions:

Smooth

Characteristic of muscles that perform involuntary movements, found in the walls of internal organs.

Arms

Upper limbs of the human body, extending from the shoulders to the hands, used for grasping and manipulation.

Ascending Pathway

Neural paths that transmit sensory information from the body to the brain.

Secondary Neuron

A neuron that receives a synaptic input from primary neurons and transmits the signal to other neurons or muscles.