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:

Platter

A rigid, flat surface in a hard disk drive where data is magnetically stored.

Spindle

A rotating axis of a machine, which tools or workpieces attach to for machining purposes.

Magnetic Disk Storage

Magnetic disk storage is a type of data storage that uses magnetic storage to record and retrieve digital information using one or more rotating disks.

Floppy Disk

A magnetic storage medium encased in a square or rectangular plastic shell, used primarily in the late 20th century for storing computer data.