When a Firm Simultaneously Implements Both a Product Diversification Strategy

question 33

Multiple Choice

When a firm simultaneously implements both a product diversification strategy and a geographic market diversification strategy it is said to be implementing a(n)

• A) mixed-market diversification strategy.
• B) unrelated-diversification strategy.
• C) product-differentiation strategy.
• D) product-market diversification strategy.

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Definitions:

Opportunity Cost

The potential benefit that is given up when one alternative is selected over another.

Manufacturing Company

A business entity engaged in the transformation of raw materials into finished goods for sale by using labor, machines, and chemical or biological processing.

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes to covering fixed costs and generating profit.

Variable Categories

Classes or groups of variables in statistics or data analysis that can take on different values and are used to categorize or differentiate data points.