A Related Diversification Strategy Involves Building the Company Around Businesses

question 40

Multiple Choice

A related diversification strategy involves building the company around businesses:

• A) with strategic fit with respect to key value chain activities and competitive assets.
• B) that are highly independent,proficient,and efficient operating firms.
• C) with separate value chain activities that drive each business.
• D) that are ripe for cross-business distribution and allotment.
• E) All of these.

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Definitions:

Slope

The measure of steepness or the degree of inclination of a line, representing the ratio of the vertical and horizontal changes between two points on the line.

Y-Intercept

The point at which a line or curve intersects the y-axis of a graph, representing the value of the dependent variable when the independent variable is zero.

Least Squares Regression

A statistical method used to determine the best-fitting line through a set of points by minimizing the sum of the squares of the vertical distances (residuals) of the points from the line.

Slope

In mathematics and statistics, the slope refers to the measure of the steepness or incline of a line, quantitively defined as the ratio of the vertical change to the horizontal change between two points on the line.