The Key Drivers of Diversification for Most of the 20^th

question 19

Multiple Choice

The key drivers of diversification for most of the 20^th century were:

• A)Shareholder value maximization
• B)The quest for growth and risk reduction
• C)The desire to escape mature sectors and enter new,technology-based industries
• D)The quest to exploit economies of scope.

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Definitions:

Trade-Off

A choice made in a given situation where one aspect of a set or design is reduced or forfeited to improve other elements.

Opportunity Cost

The dropping of possible gains that could come from other alternatives when a specific one is chosen.

Production Technology

The methods and processes used to convert inputs into outputs (goods or services).

Corn

A cereal plant that yields large grains, or kernels, set in rows on a cob; widely grown for food, fodder, and biofuel.