With a Strategy of Unrelated Diversification, an Acquisition Is Deemed

question 59

Multiple Choice

With a strategy of unrelated diversification, an acquisition is deemed to have potential if it

• A)can achieve at least existing profit margins into the near future.
• B)has the opportunity to generate positive buzz in the industry, even if it may not be able to contribute to the parent firm's bottom line.
• C)can pass the industry attractiveness test and the cost of entry test, and if it has good prospects for profit growth.
• D)can pass at least the industry attractiveness test if not the cost of entry test.
• E)can add economic value for managers.

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Definitions:

National Income

The total value of all goods and services produced by a country within a specific time period, measuring the economic performance.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and vehicles.

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on world politics, economy, and culture.

National Income

The total value of all goods and services produced by a country's economy over a specific period, accounting for income earned domestically and abroad.