The USFast-Food Chain Sonic Will Only Open New Outlets in States

question 93

Multiple Choice

The U.S.fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores.This is an example of:

• A)differentiation.
• B)increasing vertical scope.
• C)diversification.
• D)offshoring.
• E)increasing geographic scope.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a particular market.

Equity-Financed

Pertains to acquiring funds to finance projects or investments through selling shares of stock, effectively avoiding debt.

Shares

Shares represent units of ownership in a company, giving the shareholder a proportionate claim on the company's assets and profits based on the number of shares they hold.

Synergy Value

The additional value created by combining two companies, expected to result from efficiencies, shared technologies, or market capabilities.