To Create Value for Shareholders Via Diversification, a Company Must

question 35

Multiple Choice

To create value for shareholders via diversification, a company must

• A)get into new businesses that are profitable.
• B)diversify into industries that are growing rapidly.
• C)spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
• D)diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
• E)diversify into businesses that have either key success factors or value chains that are similar to its present businesses.

---

Definitions:

Company's Vision

A strategic declaration of what a company aims to achieve in the future, serving as a guide for its decisions and actions.

Self-Discipline

The ability to mobilize one’s efforts to stay focused on attaining an important goal.

Leadership Development

Programs or processes designed to enhance the leadership skills, abilities, and effectiveness of individuals within an organization.

Double-Loop Learning

A learning process where not only are errors detected and corrected, but the underlying values and assumptions leading to the errors are also examined and modified.