To Create Value for Shareholders Via Diversification, a Company Must

question 35

Multiple Choice

To create value for shareholders via diversification, a company must

• A)get into new businesses that are profitable.
• B)diversify into industries that are growing rapidly.
• C)spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
• D)diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
• E)diversify into businesses that have either key success factors or value chains that are similar to its present businesses.

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Definitions:

Sales Response Function

A model or analysis that predicts the relationship between sales efforts and the resulting sales performance or outcomes.

Territory Formation

The process of assigning sales territories, defining geographic or market-based areas for sales representatives to cover.

Product Lines

Product lines are groups of related products that a company sells, offering varying versions to reach different customer needs or preferences.

Concentrated Liquid

Refers to a solution that has a high proportion of solute compared to its solvent, often requiring dilution before use.