Firms Have Several Choices of Diversification Initiatives That Can Be

question 69

Multiple Choice

Firms have several choices of diversification initiatives that can be used to create value. Which of the following is not one of them?

• A)using related diversification to acquire economies of scope leveraging pooled negotiating power
• B)using related diversification to acquire market power by leveraging core competencies
• C)using unrelated diversification to acquire financial synergies through portfolio management
• D)using related diversification to acquire parenting, restructuring, and financial synergies through corporate restructuring and parenting

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Definitions:

Footprints

Marks left by a foot or shoe on a surface, often used metaphorically to refer to evidence or a trace of someone's presence or impact.

Valid Argument

An argument in which, if the premises are true, the conclusion necessarily follows, maintaining logical consistency.

Fugitive

A person who has escaped from capture or is in hiding, often to avoid arrest or persecution.

Valid Argument

A logical sequence of statements where if the premises are true, the conclusion must also be true.