When Diversification Combines Two Businesses in Different Industrial Sectors,the Most

question 26

Multiple Choice

When diversification combines two businesses in different industrial sectors,the most important determinant of whether the diversification is likely to create value is whether the diversification:

• A)Changes the debt/equity ratio of the combined company
• B)Is between businesses with similar values and management systems
• C)Causes management to lose its focus on its core business
• D)Offers opportunities for sharing resources and capabilities.

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Definitions:

Resists Change

Describes an individual or entity that opposes or struggles against alterations in their environment or status quo.

Difficult

Hard to accomplish, achieve, or deal with; requiring considerable effort or skill.

Easy

A term used to describe tasks or activities that can be accomplished with minimal effort or difficulty.

Sleeping And Eating Schedule

A daily routine that includes specific times for sleeping and eating, crucial for maintaining physical health and well-being.