The Three Main Types of Diversification Strategies Are

question 40

Multiple Choice

The three main types of diversification strategies are:

• A)Acquisitions, joint ventures, and divestments.
• B)Acquisitions, mergers, and buy outs.
• C)Acquisitions, internal new ventures, and joint ventures.
• D)Related acquisitions, unrelated acquisitions, and mergers.
• E)Joint ventures, strategic alliances, and long-term contracts.

---

Definitions:

Loanable Funds Market

A theoretical market where borrowers and lenders interact to determine the interest rate and the quantity of loanable funds exchanged.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, representing the true cost of borrowing.

National Saving

The sum of savings made by both individuals and the government within a country, crucial for financing national investments.

Real Exchange Rate

An exchange rate that has been adjusted to reflect the purchasing power of different currencies.