A Company That Is Already Diversified May Choose to Broaden

question 67

Multiple Choice

A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because

• A) it has resources or capabilities that are eminently transferable to other related or complementary businesses.
• B) the company's growth is sluggish and it needs the sales and profit boost that a new business can provide.
• C) management wants to lessen the company's vulnerability to seasonal or recessionary influences.
• D) unfavorable driving forces face the company's core business.
• E) All of these.

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Definitions:

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Prohibits

Officially forbids or disallows a certain action, behavior, or practice by law or regulation.

Coercing Employees

The act of compelling employees to act or not act under threat, pressure, or intimidation, often in the context of labor relations.

Landrum-Griffin Act

A U.S. federal law enacted in 1959 to protect union members' rights and improve labor union governance and transparency.