The Primary Means by Which a Firm Can Diversify Are

question 45

Multiple Choice

The primary means by which a firm can diversify are ________,________,and ________.

• A) mergers and acquisitions; differentiation; overall cost leadership
• B) mergers and acquisitions; joint ventures and strategic alliances; internal development
• C) joint ventures and strategic alliances; integration of value chain activities; acquiring human capital
• D) mergers and acquisitions; internal development; differentiation

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Definitions:

Economic Profit

The separation between a company's complete financial intake and its aggregate financial obligations, incorporating both definite and subtle costs.

Marginal Cost

The cost associated with the production of an additional unit of a product or service.

Maximizing Profit

The process of adjusting inputs and outputs to achieve the highest possible return from business activities.

Identical Firms

Companies in a market that offer products or services that are exactly the same in terms of quality, performance, and price.