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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Definitions:

Energy Policy

Plans and actions taken by a government or organization regarding the production, distribution, and consumption of energy.

Practical Joke

A trick played on someone in order to make them look foolish or to amuse others, often involving a physical or visual deception.

Fire Department

An organization that provides firefighting services to protect the public from fire hazards and emergencies.

Anglo Culture

The customs, social practices, and norms originating from or associated with English-speaking countries, particularly those with a historical connection to England.