An Acquisition of an Unrelated Business Is Deemed to Have

question 25

Multiple Choice

An acquisition of an unrelated business is deemed to have potential

• A)if it is aimed at achieving good financial fit (whereas related diversification aims at good strategic fit).
• B)if it can achieve at least existing profit margins into the near future.
• C)if it passes the competitive fit,financial fit,strategic relatedness,and value chain maximization tests
• D)if it has the opportunity to generate positive buzz in the industry,even if it may not be able to contribute to the parent firm's bottom line.
• E)if it can pass the industry attractiveness and cost-of-entry test,and if it has good prospects for profit growth.

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Definitions:

Instrumental Communication

Involves sending messages that are means to an end.

Role Conflict

Role conflict occurs when an individual faces incompatible demands or expectations from multiple roles they occupy in society, leading to stress and difficulty in fulfilling these diverse obligations.

Statuses

Refers to the social positions that an individual occupies, such as being a student, parent, or teacher, which come with specific roles and expectations.

Role Demands

The expectations and responsibilities that come with a particular social role or position.