What Is the Primary Disadvantage of Employing a Selective Specialization

question 91

Multiple Choice

What is the primary disadvantage of employing a selective specialization strategy?

• A)Gaining market distribution will be costly.
• B)The organization may be spread too thin.
• C)The organization achieves neither marketing nor manufacturing synergies.
• D)R&D-manufacturing has the difficulty of producing multiple new lines.
• E)It is too risky for a company to put all its eggs in one basket.

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Definitions:

Astronomy

The scientific study of celestial objects, space, and the physical universe as a whole, beyond Earth's atmosphere.

Treynor Measure

A performance metric that evaluates the returns of an investment portfolio or fund relative to its market risk.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points or investment returns around the mean.

Beta

A quantification of the risk and fluctuations experienced by a security or portfolio when compared to the general market.