With an Unrelated Diversification Strategy, the Types of Companies That

question 12

Multiple Choice

With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are

• A) struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.
• B) companies offering the biggest potential to reduce labor costs.
• C) cash cow businesses with excellent financial fit.
• D) companies that are market leaders in their respective industries.
• E) companies that employ the same basic type of competitive strategy as the parent corporation's existing businesses.

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Definitions:

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems (arrhythmias), and many others.

ECG Stress Test

A diagnostic test examining how the heart works under stress, typically involving exercise or medication.

Ventricular Action

The activity or contractions of the ventricles, the two lower chambers of the heart, responsible for pumping blood to the body and lungs.

T Wave

A component of the heart's electrical pattern recorded during an EKG, representing the repolarization of the ventricles.