The Success of Unrelated Diversification Is Dependent Upon Management's Ability

question 9

Multiple Choice

The success of unrelated diversification is dependent upon management's ability to:

• A) acquire new businesses that utilize much the same technology as existing businesses.
• B) divest businesses whose competitive strategies do not match the overall competitive strategy of the corporation.
• C) acquire new businesses having attractive distribution-related and customer-related strategic fits with existing businesses.
• D) spot bargain-priced companies with big upside potential and then turn around their operations quickly with the aid of the parent company's financial resources and managerial know-how.
• E) identify potential new acquisition candidates that are cash cows (as opposed to cash hogs).

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Definitions:

Conscientiousness

A characteristic that signifies an individual's talent for keeping things organized, being reliable, and showing a robust dedication to tasks.

Relational Mobility

How easy it is to move in and out of relationships.

Sociability Facet

An aspect of personality related to how individuals prefer to interact with others and their tendency toward social engagement.

Extraversion

An attribute marked by the ability to interact socially with ease, the propensity to converse freely, a confident demeanor, and the display of emotions vividly.