Diversification Merits Strong Consideration Whenever a Single-Business Company

question 78

Multiple Choice

Diversification merits strong consideration whenever a single-business company:

• A) has integrated backward and forward as far as it can.
• B) is faced with diminishing market opportunities and stagnating sales in its principal business.
• C) has achieved industry leadership in its main line of business.
• D) encounters declining profits in its mainstay business.
• E) faces strong competition and is struggling to earn a good profit.

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Definitions:

Human Nature

The intrinsic characteristics, behaviors, and motivations that are considered inherent in all human beings.

Unconscious

A part of the mind that contains thoughts, memories, and desires not directly accessible to awareness but that can influence behavior.

Neurotic Disturbance

Describes psychological issues characterized by anxiety, depression, or other forms of emotional distress, not arising from psychosis.

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often interpreted for psychological significance.