The Success of Unrelated Diversification Is Dependent Upon Management's Ability

question 57

Multiple Choice

The success of unrelated diversification is dependent upon management's ability to

• A) acquire new businesses that utilize much the same technology as existing businesses.
• B) divest businesses whose competitive strategies do not match the overall competitive strategy of the corporation.
• C) acquire new businesses having attractive distribution-related and customer-related strategic fits with existing businesses.
• D) spotting bargain-priced companies with big upside potential and then turning around their operations quickly with the aid of the parent company's financial resources and managerial know-how.
• E) identify potential new acquisition candidates that are cash cows (as opposed to cash hogs).

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Definitions:

Make-believe

A form of play or imagination where individuals create and act in a fictional scenario, often involving roles and narratives.

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Children who are frequently identified both as someone’s best friend and as being disliked.

Nominated

Being proposed or suggested for a position, role, honor, or award.

Actively Disliked

The state of being regarded with strong negative feelings or aversion by someone on a consistent basis.