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

question 42

Multiple Choice

The success of unrelated diversification is contingent 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)identify bargain-priced companies with big upside potential and then turn 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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