Diversifying into New Businesses Is Justifiable Only If It

question 106

Multiple Choice

Diversifying into new businesses is justifiable only if it:

• A) results in increased profit margins and bigger total profits.
• B) builds added long-term economic shareholder value by building a synergistic multibusiness company.
• C) helps a company escape the rigors of competition in its present business.
• D) leads to the development of a greater variety of distinctive competencies and competitive capabilities.
• E) helps the company overcome the barriers to entering additional foreign markets.

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Definitions:

Genetic Characteristics

The attributes and features that are inherited from one's parents through genes.

Sociocultural Approach

The Sociocultural Approach is a method in psychology that examines how societal and cultural influences affect individual behaviors and mental processes.

Antisocial Personality Disorder

A mental disorder characterized by a long-term pattern of manipulation, exploitation, or violation of others' rights.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, and behaviors that may cause significant distress or impairment in functioning.