The Two Biggest Drawbacks or Disadvantages of Unrelated Diversification Are

question 45

Multiple Choice

The two biggest drawbacks or disadvantages of unrelated diversification are

• A)underemphasizing the importance of resource fit and the strong likelihood of diversifying into businesses that top management does not know all that much about.
• B)insufficient cash flows to finance so many different lines of business and a lack of uniformity among the strategies of the businesses the company has diversified into.
• C)volatile sales and profits and making the mistake of diversifying into too many cash cow businesses.
• D)the difficulties of competently managing a set of fundamentally different businesses and having a very limited competitive advantage potential that cross-business strategic fit provides.
• E)overinvesting in the achievement of economies of scope and the difficulties of achieving a good mix of cash cow and cash hog businesses.

Acknowledge the influence of lifestyle choices on physical health, including diet and exercise.

Understand the impacts of substance abuse on health and relationships.

Realize the importance of health awareness and proactive management in preventing disease and maintaining wellness.

Identify the risks associated with sugar and refined carbohydrates consumption.

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Definitions:

Office Space

The area or rooms used for business activities or work, typically in a building designated for commercial or professional use.

Accounting Profits

The difference between total revenue and explicit costs, reflecting the net income reported on financial statements.

Economic Profits

Profits exceeding the opportunity costs of all inputs into a business, considered a measure of efficiency and economic performance beyond just accounting profit.

Farmer's Market

A public and recurring assembly of farmers or their representatives selling the food and products they produce directly to consumers.