Diversification Decisions by fiRms Involve the Following Key Issues

question 31

Multiple Choice

Diversification decisions by firms involve the following key issues:

• A)The attractiveness of the industry to be entered and the potential for competitive advantage
• B)The potential for the diversification to increase growth and reduce risk
• C)The opportunities for exploiting economies of scope in resources and capabilities
• D)The benefits of synergy relative to the costs or coordination.

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Definitions:

Agricultural Use

The application or practice of cultivating land and breeding animals and plants to provide food, fiber, medicinal plants, and other products to sustain and enhance human life.

Standing-Water Ecosystem

A lake or pond ecosystem.

Lake

A large body of water surrounded by land, not directly connected to the sea, which can be freshwater or saltwater.

Pond

A small body of still water, typically smaller than a lake, formed naturally or by artificial means.