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:

Unemployment

The situation of being without a job, despite being willing and able to work, typically measured as a percentage of the labor force.

Health Risk

The probability of experiencing harm or adverse effects on health as a result of exposure to a hazard.

Internal Locus

The belief that one has control over their life and outcomes, as opposed to external forces having that control.

Luck

The experience of notably positive, negative, or improbable events that are not attributable to one's own actions and are considered to be influenced by chance.