Diversifying into New Businesses Can Be Considered a Success Only

question 112

Multiple Choice

Diversifying into new businesses can be considered a success only if it

• A)results in increased profit margins and bigger total profits.
• B)builds shareholder value.
• C)helps a company escape the rigors of competition in its present business.
• D)leads to the development of a greater variety of distinctive competencies and competitive capabilities.
• E)helps the company overcome the barriers to entering additional foreign markets.

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Definitions:

Administrative Expense

Expenses related to the general operation of a business, including salaries of executive personnel, accounting and legal services, and insurance.

Janitorial Services

A category of services that includes cleaning, maintaining, and often securing commercial or residential buildings.

Square Footages

A measurement of area used to determine the size of a space, often used in real estate and construction for billing or planning purposes.

Allocated

The process of distributing resources or costs among different departments, activities, or products.