Retrenching to a Narrower Diversification Base

question 8

Multiple Choice

Retrenching to a narrower diversification base

• A)is usually the most attractive long-run strategy for a broadly diversified company confronted with recession,high interest rates,mounting competitive pressures in several of its businesses,and sluggish growth.
• B)is directed at improving long-term performance by building stronger positions in a smaller number of core businesses.
• C)is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.
• D)is sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
• E)is a strategy best reserved for companies in poor financial shape.

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Definitions:

Appeal

The process of applying to a higher court for a reversal of the decision of a lower court.

De Novo Review

A legal term referring to a court's review of a matter without regard for the previous court's findings, effectively starting anew.

Appellate Court

A court that reviews and potentially reverses decisions made by lower courts, often focusing on legal errors rather than factual disputes.

Jury's Finding

The determination or decision made by a jury regarding the facts of a case, which influences the final verdict.