A Company Can Best Accomplish Diversification into New Industries by

question 54

Multiple Choice

A company can best accomplish diversification into new industries by

• A) outsourcing most of the value chain activities that have to be performed in the target business/industry.
• B) acquiring a company already operating in the target industry, creating a new business subsidiary internally to compete in the target industry, or forming a joint venture with another company to enter the target industry.
• C) integrating forward or backward into the target industry.
• D) shifting from a strategic group comprised mostly of single-business companies to a strategic group comprised of diversified companies.
• E) employing an offensive strategy with new product innovation as its centerpiece.

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Definitions:

Perfected

The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have.

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.

Equity Of Redemption

The right of a mortgagor to reclaim property by paying off the full amount of the mortgage plus any accrued interest and costs before foreclosure.

Home Equity Loan

A line of credit made available to homeowners based on the value of the property over and above any existing mortgages.