In Which of the Following Instances Is Retrenching to a Narrower

question 61

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