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.

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Definitions:

Budgeted Raw Material Purchases

The estimated amount a company plans to spend on raw materials for production over a specific period.

Estimated Direct Labor Cost

The projected cost of labor directly involved in the manufacturing of goods or provision of services, excluding indirect labor costs.

Expected Cash Collections

Projected amounts of money a business anticipates receiving from its customers or clients over a specific period.

Estimated Direct Labor Cost

The anticipated cost of labor directly associated with the production of goods or services, typically estimated before production begins.