The Rising Ratio of Divestitures to New Acquisitions That Occurred

question 24

Multiple Choice

The rising ratio of divestitures to new acquisitions that occurred in the past suggests that

• A) poison pills are no longer effective as a defense against takeovers.
• B) too much diversification strained the operating capabilities of many firms.
• C) the portfolio effect has been a highly successful method of reducing risk.
• D) multinational firms are increasingly considered high risk investments.

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Definitions:

Physical Threat

Any potential cause of physical harm or damage to an individual's bodily integrity, security, or health.

Monetary Threat

refers to the risk of financial loss or damage, which can impact individuals, businesses, or economies.

Comparative Advertising

Comparative advertising involves an advertising strategy where a brand compares its product directly with competing products, emphasizing its advantages to influence consumer preference.

Emotional Appeal

A persuasive technique used in marketing and advertising that targets the audience's emotions to create a connection with the product or brand.