When Diversification Involves Additions of a Business Related to the Firm

question 49

Multiple Choice

When diversification involves additions of a business related to the firm in terms of technology,markets or products,it involves:

• A) Concentrated growth
• B) Horizontal integration
• C) Concentric diversification
• D) Vertical diversification

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Definitions:

Precautions

Actions taken in advance to prevent harm or secure good outcomes.

Moral Hazard

The situation where the behavior of one party changes to the detriment of another after a transaction has occurred.

Credit Union

A member-owned financial cooperative, controlled by its members and operating for the purpose of providing credit at competitive rates, as well as other financial services to its members.

Opportunistically

Acting Opportunistically means taking advantage of situations with little regard for principles or consequences, often seeking to benefit at the expense of others.