Diversification Merits Strong Consideration Whenever a Single-Business Company

question 89

Multiple Choice

Diversification merits strong consideration whenever a single-business company

• A)has integrated backward and forward as far as it can.
• B)faces diminishing market opportunities and stagnating sales in its principal business.
• C)has achieved industry leadership in its main line of business.
• D)encounters declining profits in its mainstay business.
• E)faces strong competition and is struggling to earn a good profit.

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Definitions:

Checks

Checks are written, dated, and signed instruments that direct a bank to pay a specific amount of money from the writer's account to the person or entity in whose name the check has been issued.

Deposits

Funds placed into an account at a financial institution for safekeeping, which can be used for transactions or as savings.

Commission

A commission is a fee paid to an agent or employee for completing a transaction or service, usually calculated as a percentage of the sale or transaction value.

Reimbursing

The act of compensating someone for expenses they have incurred on your behalf.