Diversifying into New Businesses Is Justifiable Only If It

question 83

Multiple Choice

Diversifying into new businesses is justifiable only if it

• A) results in increased profit margins and bigger total profits.
• B) builds shareholder value.
• C) helps a company escape the rigors of competition in its present business.
• D) leads to the development of a greater variety of distinctive competencies and competitive capabilities.
• E) helps the company overcome the barriers to entering additional foreign markets.

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Definitions:

Peyronie's Disease

A medical condition characterized by the development of fibrous scar tissue inside the penis, causing curved, painful erections.

Calcium Deposits

Accumulations of calcium salts in body tissues, which can form stones or cause stiffness and pain in joints and muscles.

Corpora Cavernosa

The hollow chambers in the shaft of the clitoris or penis that fill with blood and swell during arousal.

Erectile Disorder

A sexual dysfunction characterized by the inability to develop or maintain an erection of the penis during sexual performance.