Firms Use Related Diversification Strategies in Order To

question 45

Multiple Choice

Firms use related diversification strategies in order to:

• A) Horizontally integrate the firm's operations and processes.
• B) Increase revenue from the dominant business of the firm.
• C) Benefit from economies of scale and scope.
• D) Improve the chances of being acquired by a similar firm.

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Definitions:

Cognitive Competence

The ability to understand, process, and utilize information effectively.

Social Compensation

The effort to perform at a higher level in social situations where one feels inferior or has experienced rejection, in order to compensate for perceived shortcomings.

Self-Esteem

The perception that an individual has of their self-worth, shaped by their thoughts, emotions, and experiences.

Social Facilitation

The tendency for individuals to perform differently, often better, when in the presence of others than when alone, due to the perceived pressure of an audience or competition.