With an Unrelated Diversification Strategy,the Types of Companies That Make

question 85

Multiple Choice

With an unrelated diversification strategy,the types of companies that make particularly attractive acquisition targets are

• A) financially distressed companies with good turnaround potential,undervalued companies that can be acquired at a bargain price,and companies that have bright growth prospects but are short on investment capital.
• B) companies offering the biggest potential to reduce labor costs.
• C) cash cow businesses with excellent financial fit.
• D) companies that are market leaders in their respective industries.
• E) companies that are employing the same basic type of competitive strategy as the parent corporation's existing businesses.

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Definitions:

Connective Tissue

Tissue that supports, binds together, and protects tissues and organs of the body; it includes various types such as bone, cartilage, and fat.

Scleroderma

A chronic autoimmune disease characterized by hardening and tightening of the skin and connective tissues.

Trichotillomania

A psychological condition involving an irresistible urge to pull out one's hair, leading to noticeable hair loss.

Tinea Capitis

A fungal infection of the scalp, commonly known as ringworm, that can cause hair loss and scalp scaly patches.