Which of the Following Is Not One of the Suggested

question 65

Multiple Choice

Which of the following is not one of the suggested appeals of an unrelated diversification strategy?

• A) The ability to spread business risk over truly diverse businesses (as compared to related diversification,which is limited to spreading risk only among businesses with strategic fit)
• B) An ability to employ the company's financial resources to maximum advantage by investing in whatever industries/businesses offer the best profit prospects
• C) Superior top management ability to cope with the wide variety of problems encountered in managing a broadly diversified group of businesses
• D) A potential for achieving somewhat more stable corporate sales and profits over the course of economic upswings and downswings (to the extent the company diversifies into businesses whose ups and downs tend to occur at different times)
• E) The potential to grow shareholder value by investing in bargain-priced companies with big upside profit potential

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Definitions:

Tutsis

An ethnic group found primarily in Rwanda and Burundi, historically involved in conflict with the Hutu majority in Rwanda, notably during the 1994 genocide.

Ethnicity

A category of identifying individuals based on common linguistic, cultural, ancestral, or national characteristics.

Race

A social construct used to categorize humans into large and distinct populations based on physical characteristics, ancestry, historical affiliations, or shared culture.

Biological Differences

Divergences among organisms based on genetic, physiological, or anatomical characteristics, typically within or between species.