Which of the Following Reasons Can Make a Diversification Strategy

question 54

Multiple Choice

Which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue?

• A)Steady industry conditions
• B)Varying finn-specific conditions
• C)Diversification for pooling risks
• D)Decreasing bureaucratic costs
• E)Greater differentiation of products

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Definitions:

Services

Intangible products provided to consumers or businesses, involving human or mechanical effort.

Multinational

A company that operates in several countries, managing production or delivering services in more than one country.

Autonomous

The ability to operate independently or self-govern, often referring to systems, machines, or organizations that do not require external control or intervention.

Internet

A global network of computers that enables users to access information and communicate with others across the world, facilitating a wide range of services and applications.