In Which of the Following Instances Is Retrenching to a Narrower

question 60

Multiple Choice

In which of the following instances is retrenching to a narrower diversification base NOT likely to be an attractive or advisable strategy for a diversified company?

• A) When a diversified company has struggled to make certain businesses attractively profitable
• B) When a diversified company has too many cash cows
• C) When one or more businesses are cash hogs with questionable long-term potential
• D) When businesses in once-attractive industries have badly deteriorated
• E) When a diversified company has businesses that have little or no strategic or resource fits with the "core" businesses that management wishes to concentrate on

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Definitions:

Receptive Fields

Specific areas within the sensory nervous system that, when stimulated, affect the activity of neurons.

Preexisting Categories

Cognitive classifications or groups that an individual has already formed before encountering new information, which helps in organizing and assimilating new data.

ΔI

Signifies a change in a variable, commonly used in mathematics and physics to denote a change in intensity or other measurable factors.

Standard Stimulus

A specific, unchanging stimulus used as a basis for comparison in experimental investigations.