A Related Diversification Strategy Involves Building the Company Around Businesses

question 27

Multiple Choice

A related diversification strategy involves building the company around businesses

• A) with strategic fit with respect to key value chain activities and competitive assets.
• B) that are highly independent, proficient, and efficient operating firms.
• C) with strategic fit across separate value chain activities that drive each business.
• D) that can also include unrelated businesses with dissimilar resource requirements.
• E) that have dissimilar value chain activities with no cross-business commonalities.

Understand the effect of a principal’s death on agency relationships and agent authority.

Grasp the nuances of express, implied, and apparent authority within agency law.

Recognize the conditions under which an agency relationship does not terminate.

Differentiate between employees, gratuitous agents, and independent contractors within the context of agency law.

---

Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves, either in their vaults or at a central bank.

Create Money

The process by which the money supply of a country is increased, typically by the central bank issuing currency or through the banking system's lending activities.

Real Estate

Pertains to land and any permanent structures or improvements attached to it, such as buildings, houses, and other property types.

Federal Funds Market

A market for overnight lending and borrowing of reserves among banks; the interbank market for reserves on account at the Fed.