One of the Suggested Advantages of an Unrelated Diversification Strategy

question 92

Multiple Choice

One of the suggested advantages of an unrelated diversification strategy is that it

• A)expands a firm's competitive advantage opportunities to include a wider array of businesses.
• B)spreads the stockholders' risks across a group of truly diverse businesses.
• C)increases strategic fit opportunities and the potential for a 1 + 1 = 3 outcome on the bottom line.
• D)results in having more cash cow businesses than cash hog businesses.
• E)facilitates capturing the financial fits among sister businesses (as compared to a strategy of related diversification).

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Definitions:

Compensatory Plasticity

The brain's ability to reorganize and adjust its activities in response to injury or disease, or as a result of learning or experience.

Neural Change

Alterations in the structure or function of the nervous system as a result of growth, learning, or experience.

Behavioral Symptoms

Observable actions or behaviors exhibited by an individual that may indicate the presence of a neurological or psychiatric condition.

Neuronal Plasticity

The capacity of neurons and neural networks in the brain to change their connections and behavior in response to new information, sensory stimulation, development, damage, or dysfunction.