The Two Biggest Drawbacks or Disadvantages of Unrelated Diversification Are

question 102

Multiple Choice

The two biggest drawbacks or disadvantages of unrelated diversification are

• A) the difficulties of passing the cost-of-entry test and the ease with which top managers can make the mistake of diversifying into businesses where competition is too intense.
• B) the difficulties of capturing financial fit and having insufficient financial resources to spread business risk across many different lines of business.
• C) demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.
• D) Ending up with too many cash hog businesses and too much diversity among the competitive strategies of the businesses it has diversified into.
• E) the difficulties of achieving economies of scope and conflicts/incompatibility among the competitive strategies of the company's different businesses.

Identify conditions for accrual of vacation pay under GAAP.

Compute interest expense and net carrying value for non-interest-bearing notes.

Determine bonus compensation expenses under specific conditions.

Compare the use and significance of quick and current ratios for liquidity analysis.

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Definitions:

Research Findings

Results or outcomes derived from systematic investigation into a specific subject or area of study.

Male Aggression

Behaviors or tendencies showing forcefulness, hostility, or combativeness predominantly observed in males, often discussed in psychological or sociological contexts.

Gender Distribution

Refers to the statistical spread of different genders within a particular population or environment.

Feminist Movement

A series of political campaigns and movements aimed at defining, establishing, and defending equal political, economic, and social rights for women.