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:

Occasional Dizziness

Experiencing a transient sensation of unsteadiness or a feeling of light-headedness at irregular intervals.

Ideal System

A theoretical or conceptual model representing the most desirable or perfect attributes of a system or method.

Structured Interviews

A method of data collection that involves asking all participants the same set of predetermined questions in the same order to ensure consistency in the responses.

Scientific Research

A methodical study and investigation conducted to establish facts and reach new conclusions.