One Strategic Fit Based Approach to Related Diversification Would Be

question 127

Multiple Choice

One strategic fit based approach to related diversification would be to:

• A) diversify into new industries that present opportunities to transfer specialized expertise,technological know-how,or other valuable resources and capabilities from one business's value chain to another's.
• B) diversify into those industries where the same kinds of driving forces and competitive forces prevail,thus allowing use of much the same competitive strategy in all of the businesses a company is in.
• C) acquire rival firms that have broader product lines so as to give the company access to a wider range of buyer groups.
• D) acquire companies in forward distribution channels (wholesalers and/or retailers).
• E) expand into foreign markets where the firm currently does no business.

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Definitions:

Tax Purposes

Considerations or actions taken to comply with tax laws or to optimize tax liabilities and benefits.

General Partnership

A business arrangement where two or more individuals share ownership, profits, and liabilities of a business.

Pet Grooming

The practice of cleaning and hygienically caring for pets, often involving hair cutting, nail trimming, and bathing.

Financial Responsibilities

Obligations related to managing money, assets, and investments, including budgeting, investing, and managing debt.