The Basic Premise of Unrelated Diversification Is That

question 48

Multiple Choice

The basic premise of unrelated diversification is that

• A)the least risky way to diversify is to seek out businesses that are leaders in their respective industry.
• B)the best companies to acquire are those that offer the greatest economies of scope rather than the greatest economies of scale.
• C)the best way to build shareholder value is to acquire businesses with strong cross-business financial fit.
• D)any company that can be acquired on good financial terms and that has satisfactory growth and earnings potential represents a good acquisition and a good business opportunity.
• E)the task of building shareholder value is better served by seeking to stabilize earnings across the entire business cycle than by seeking to capture cross-business strategic fits.

Understand the concept and benefits of a product platform strategy.

Distinguish between exploratory and other research techniques in terms of scale, structure, and cost.

Understand the significance of consumer insights during the new product development process.

Grasp the influence of technology on distribution (place) and promotion in the marketing mix.

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A global network of clubs whose members volunteer on various humanitarian projects, aiming to promote peace, fight disease, and improve communities.

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