Which One of the Following Is NOT an Important Aspect

question 76

Multiple Choice

Which one of the following is NOT an important aspect of evaluating the merits of a diversified company's strategy?

• A) Assessing the competitive strength of each business the company has diversified into
• B) Determining which business units are cash cows and which ones are cash hogs,and then evaluating how soon the company's cash hogs can be transformed into cash cows
• C) Evaluating the strategic fits and resource fits among the various sister businesses
• D) Assessing the attractiveness of the industries the company has diversified into,both individually and as a group
• E) Ranking the performance prospects of the businesses from best to worst and deciding what priority to give each of the company's business units in allocating resources

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Definitions:

Product's Price

The amount of money charged for a product or service, determined by various factors including cost of production, market demand, and competition.

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable costs, allowing flexibility in pricing.

Pricing Strategies

Tactics used by companies to determine the best price points for their products or services in order to maximize profits and market share.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.