Which of the Following Is NOT One of the Appeals

question 68

Multiple Choice

Which of the following is NOT one of the appeals of related diversification?

• A) It can offer opportunities for transferring expertise, technology, and other capabilities from one business to another.
• B) It can offer opportunities for reducing costs on advertising by leveraging use of a competitively powerful brand name.
• C) It is particularly well-suited for the use of first-mover strategies and capturing valuable financial fits.
• D) It may present opportunities for cross-business collaboration to create valuable new competencies and capabilities.
• E) It can facilitate sharing of other resources (besides brands) that support corresponding value chain activities across businesses.

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Definitions:

Expense Accounts

Accounts used in accounting to track the consumption of economic resources or the incurrence of liabilities in the operation of a company.

Credits

Entries made on the right-hand side of an account, representing gains or increases in liabilities, income, or equity.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.