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.

---

Definitions:

Lucent Technologies

A former telecommunications company that was once a part of AT&T before being spun off and eventually merged with Alcatel SA to create Alcatel-Lucent.

Exxon

A multinational oil and gas corporation that is one of the world's largest publicly traded energy providers and chemical manufacturers.

Treasury Bond

Long-term, government-issued debt securities with a fixed interest rate, considered low-risk investments.

Ford

An American multinational automaker known for its production and sale of cars, trucks, and commercial vehicles.