Which of the Following Is an Important Appeal of a Related

question 72

Multiple Choice

Which of the following is an important appeal of a related diversification strategy?

• A) It represents an effective way of capturing valuable financial fit benefits.
• B) It offers opportunities to transfer skills,expertise,technical know-how,or other capabilities from one business to another.
• C) It offers significant opportunities to strongly differentiate a company's product offerings from those of rivals.
• D) It is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification.
• E) It is typically more profitable than unrelated diversification,which is a major factor in helping related diversification pass the attractiveness test.

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Definitions:

Application Program

An application program is software designed to perform a group of coordinated functions, tasks, or activities for the benefit of the user.

Central Processing Unit

The primary component of a computer that performs most of the processing inside a computer.

Main Memory

The principal storage in a computer in which data and programs are temporarily stored for quick access by the processor.

Secondary Storage

A non-volatile storage medium used for keeping data permanently, as opposed to the volatile primary storage or main memory.