To Create Value for Shareholders Via Diversification, a Company Must

question 35

Multiple Choice

To create value for shareholders via diversification, a company must

• A)get into new businesses that are profitable.
• B)diversify into industries that are growing rapidly.
• C)spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
• D)diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
• E)diversify into businesses that have either key success factors or value chains that are similar to its present businesses.

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Definitions:

Unhappy Customers

Individuals who are dissatisfied with a product, service, or experience, potentially leading to complaints or negative feedback.

Negative Experience

An unpleasant or unsatisfactory encounter or event that can lead to adverse reactions or impressions.

Negative Messages

Communications that convey bad news, refusals, or unfortunate information to the recipient.

Appropriate Reaction

A response or behavior that is suitable or fitting for a particular situation or context.