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:

Synaptic Cleft

A gap between two nerve cells where neurotransmitters are released from the presynaptic neuron to send signals to the postsynaptic neuron.

Enzymes

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.

Exocytosis

The process by which cells release substances (such as neurotransmitters and hormones) outside the cell by the fusion of a vesicle with the plasma membrane.

Synaptic Vesicles

Membrane-bound sacs in neurons that store neurotransmitters, which are released into the synaptic cleft to transmit signals between neurons.