Which of the Following Is NOT One of the Appeals

question 63

Multiple Choice

Which of the following is NOT one of the appeals of an unrelated diversification strategy?

• A) The ability to spread business risk over truly diverse industries (as compared to related diversification which is limited to spreading risk only among businesses with strategic fit).
• B) An ability to employ the company's financial resources to maximum advantage by investing in whatever industries/businesses offer the best profit prospects.
• C) The ability of superior top management to cope with the wide variety of problems encountered in managing a broadly diversified group of businesses.
• D) A potential for achieving somewhat more stable corporate sales and profits over the course of economic upswings and downswings (to the extent the company diversifies into businesses whose ups and downs tend to occur at different times).
• E) The potential to grow shareholder value by investing in bargain-priced or struggling companies with big upside profit potential,turning their operations around fairly quickly with infusions of cash and managerial know-how,and then riding the crest of higher profitability.

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Definitions:

Biologic Response Modifiers

Biologic response modifiers are substances that modify immune responses, often used in cancer treatment to enhance the body's natural defense mechanisms against disease.

Chemotherapy

A type of cancer treatment using drugs to kill or slow the growth of cancer cells, often with various side effects.

Brachytherapy

A form of radiation therapy where a radioactive source is placed close to or inside the area requiring treatment.

Radiation Therapy

A medical treatment that uses high doses of radiation to kill cancer cells and shrink tumors.