What Makes Related Diversification an Attractive Strategy Is

question 30

Multiple Choice

What makes related diversification an attractive strategy is

• A) the ability to broaden the company's product line.
• B) the opportunity to convert the competitive advantage potential into 1 + 1 = 3 gains in shareholder value.
• C) the potential for improving the stability of the company's financial performance.
• D) the ability to serve a broader spectrum of buyer needs.
• E) the added capability it provides in overcoming the barriers to entering foreign markets.

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Definitions:

Hourly Work

Work paid on an hourly basis.

Real Wages

The purchasing power of an individual's earnings, accounting for inflation.

Cost-Of-Living Increases

Adjustments to salaries or wages to offset the impact of inflation on purchasing power.

Job Evaluation

A systematic process used to assess the relative worth of jobs within an organization for the purpose of establishing fair compensation levels.