A Comprehensive Evaluation of the Group of Businesses a Company

question 27

Multiple Choice

A comprehensive evaluation of the group of businesses a company has diversified into involves

• A) evaluating the attractiveness of industries the company has diversified into and the competitive strength of each of its business units.
• B) evaluating the strategic fits and resource fits among the various sister businesses.
• C) ranking the performance prospects of the businesses from best to worst and determining what the corporate parent's priorities should be in allocating resources to its various businesses.
• D) using the results of the prior analytical steps as a basis for crafting new strategic moves to improve the company's overall performance.
• E) All of these choices are correct.

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Definitions:

Observed Frequencies

The actual number of occurrences of each category in statistical data.

Expected Frequencies

The anticipated counts in each category of a contingency table under the assumption that the null hypothesis is true, calculated from the proportions in the total sample.

Chi-square Statistic

A statistical measure used to assess the differences between observed and expected frequencies in one or more categories.

Expected Frequencies

In statistics, these are the counts predicted by a hypothesis test for categories in a contingency table, based on the distribution assumptions of the test.