Diversifying into New Businesses Can Be Considered a Success Only

question 112

Multiple Choice

Diversifying into new businesses can be considered a success only if it

• A)results in increased profit margins and bigger total profits.
• B)builds shareholder value.
• C)helps a company escape the rigors of competition in its present business.
• D)leads to the development of a greater variety of distinctive competencies and competitive capabilities.
• E)helps the company overcome the barriers to entering additional foreign markets.

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Definitions:

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by widespread financial instability and significant job losses.

Housing Prices

The cost associated with purchasing residential properties, which can fluctuate based on market conditions, location, and property characteristics.

Lehman Brothers

A global financial services firm whose bankruptcy in 2008 was a major catalyst for the global financial crisis, highlighting issues within the U.S. banking and investment sector.

AIG Bailout

A series of financial support measures provided by the U.S. government in 2008 to prevent the collapse of the insurance giant AIG, deemed "too big to fail" during the financial crisis.