Diversification into New Industries Deserves Strong Consideration When

question 76

Multiple Choice

Diversification into new industries deserves strong consideration when

• A)a multibusiness company encounters enhanced market opportunities and increasing sales in its principal business
• B)a single-business company needs to develop a multiline strategy
• C)a single-business company needs to develop a corporate-wide strategy
• D)a single-business company can achieve profitable growth opportunities in its present industry
• E)a single-business company encounters diminishing market opportunities and stagnating sales in its principal business

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Definitions:

Prices

The amount of money required to purchase a good, service, or asset, often determined by supply and demand dynamics in the market.

Hedge

Investment protection method utilized to reduce the potential for financial loss by offsetting price movements in a related asset.

Futures Contracts

Futures Contracts are legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future, widely used for hedging and speculative purposes.