A Company That Is Already Diversified May Choose to Broaden

question 65

Multiple Choice

A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because

• A) it has resources or capabilities that are eminently transferable to other related or complementary businesses.
• B) the company's growth is sluggish,and it needs the sales and profit boost that a new business can provide.
• C) management wants to lessen the company's vulnerability to seasonal or recessionary influences.
• D) unfavorable driving forces face the company's core business.
• E) All of these choices are correct.

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Definitions:

Chapter 12

A subset of bankruptcy proceedings designed specifically for family farmers and fisherman to restructure their finances and avoid liquidation or foreclosure.

Farm-Related Debt

Financial obligations arising from the operation, maintenance, or improvement of agricultural activities and farms.

Pro Rata Share

A portion of a whole that is allocated proportionally among participants based on their share or contribution.

Insufficient Funds

Insufficient funds occur when an account does not have enough money to cover checks or electronic withdrawals made against it, often resulting in fees and declined transactions.