Retrenching to a Narrower Diversification Base

question 17

Multiple Choice

Retrenching to a narrower diversification base

• A) is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth.
• B) has the advantage of focusing a diversified firm's energies on building strong positions in a few core businesses rather the stretching its resources and managerial attention too thinly across many businesses.
• C) is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.
• D) is sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
• E) is a strategy best reserved for companies in poor financial shape.

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Definitions:

Proteins

Large, complex molecules made up of amino acids that play essential roles in the body, including structural, enzymatic, and regulatory functions.

Hemolyzed

Refers to the bursting or destruction of red blood cells, leading to the release of hemoglobin into the surrounding fluid.

Crenated

Describes a process where cells, typically red blood cells, shrink due to osmosis, resulting in a notched or scalloped appearance.

Phagocytized

The process by which cells engulf and digest solid particles or other cells.