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:

Inconsistencies

Discrepancies or lack of alignment in information, actions, or beliefs that may lead to confusion or misunderstanding.

William Masters

A prominent American gynecologist and sexologist who, along with Virginia Johnson, pioneered research into the nature of human sexual response and the diagnosis and treatment of sexual disorders.

Virginia Johnson

A pioneering sexologist who, along with William Masters, conducted influential research in human sexuality, including the human sexual response cycle.

Testosterone

A steroid hormone, predominantly found in males, responsible for the development of male secondary sexual characteristics.