With a Strategy of Unrelated Diversification, an Acquisition Is Deemed

question 59

Multiple Choice

With a strategy of unrelated diversification, an acquisition is deemed to have potential if it

• A)can achieve at least existing profit margins into the near future.
• B)has the opportunity to generate positive buzz in the industry, even if it may not be able to contribute to the parent firm's bottom line.
• C)can pass the industry attractiveness test and the cost of entry test, and if it has good prospects for profit growth.
• D)can pass at least the industry attractiveness test if not the cost of entry test.
• E)can add economic value for managers.

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Definitions:

Extra-Judicial Activity

Actions or activities conducted outside the formal judicial system or without legal authority, often implying a lack of fairness or legal oversight.

Public Defender

A lawyer appointed by the court to represent defendants who cannot afford to hire an attorney, ensuring their right to legal representation.

Plea Bargains

An agreement in a criminal case between the prosecutor and defendant, where the defendant agrees to plead guilty to a particular charge in return for some concession from the prosecutor.

Court System

The organizational structure of courts that interpret the law, decide lawsuits, and adjudicate criminal offenses, typically organized in a hierarchy from local to supreme courts.