Two Divisions of a Company Decide to Use the Same

question 86

Multiple Choice

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and to reduce the fixed costs assigned by corporate headquarters. This is an example of ________.

• A) concentration on a single business
• B) international expansion
• C) focused differentiation strategy
• D) synergy

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Definitions:

Portfolio Riskiness

Refers to the degree of uncertainty or potential financial loss inherent in an investment portfolio.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. It is used in the capital asset pricing model.

Randomly Selected Stocks

Randomly selected stocks are shares chosen without a specific criterion or pattern, used often in experimental portfolios or studies to simulate or analyze market behavior.

Expected Inflation

The anticipated rate at which the general level of prices for goods and services will rise over a period.