Diversification Ought to Be Considered When

question 62

Multiple Choice

Diversification ought to be considered when:

• A) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
• B) a company lacks sustainable competitive advantage in its present business.
• C) a company begins to encounter diminishing market growth and stagnating sales prospects in its mainstay business.
• D) a company has run out of ways to achieve a distinctive competence in its present business.
• E) a company is under the gun to create a more attractive and cost-efficient value chain.

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Definitions:

Consumer Review Fairness Act

A federal law that protects consumers' ability to share their honest opinions about a business's products, services, or conduct, without fear of legal retaliation.

Honest Opinions

Honest opinions refer to statements or judgments made in good faith and believed to be true, often considered in legal contexts related to defamation or free speech.

Lemon Laws

Regulations that protect consumers from being stuck with defective vehicles or other consumer goods by requiring manufacturers to repair, replace, or refund the purchase.

Substantially Impairs

Significantly affects or decreases the value, function, or condition of something or someone's ability to perform their usual duties.