What Makes Related Diversification an Attractive Strategy

question 67

Multiple Choice

What makes related diversification an attractive strategy?

• A) The ability to broaden the company's product line
• B) The opportunity to convert cross-business strategic fit into competitive advantage over business rivals whose operations don't offer comparable strategic fit benefits
• C) The potential for improving the stability of the company's financial performance
• D) The ability to serve a broader spectrum of buyer needs
• E) The added capability it provides in overcoming the barriers to entering foreign markets

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Definitions:

Declines

Decreases in value, performance, or level over a period of time.

Capital Gain Yield

The price appreciation component of the total return on an investment, excluding any dividends or interest earned.

Income Yield

The income generated by an investment, usually expressed as a percentage of the investment's cost.

Total Return

The overall return on an investment, including the change in value plus any dividends or interest, over a specific period.