If All of a Firm's Businesses Share the Same Core

question 20

Multiple Choice

If all of a firm's businesses share the same core competencies, then that firm has implemented a strategy of ________ diversification.

• A) single-business
• B) related-linked
• C) related-constrained
• D) dominant-business

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Definitions:

Scheduled Payments

Predetermined payments made at regular intervals, such as monthly or annually, often related to a loan or mortgage.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Compounded Monthly

Refers to the process of adding interest to the principal sum of a loan or deposit on a monthly basis, where the added interest also earns interest from then on.

Savings Plans

Financial programs that allow individuals to set aside money for future use, often with tax advantages or interest benefits.