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.

---

Definitions:

Molecular Clock

The molecular clock is a method used to estimate the time of evolutionary divergence between species by comparing genetic differences and assuming a constant rate of molecular change.

Mutations

Mutations are changes in the DNA sequence of an organism's genome, which can result in new phenotypes and contribute to genetic variation.

Lineages

Sequences of species descending from a common ancestor, often shown in phylogenetic trees to illustrate evolutionary relationships.

Ancient Cetacean

Refers to the early, now-extinct members of the order Cetacea, which includes whales, dolphins, and porpoises.