An Organization That Is Diversifying Its Product Line Is Exhibiting

question 28

Multiple Choice

An organization that is diversifying its product line is exhibiting what type of corporate strategy?

• A) turnaround strategy
• B) retrenchment strategy
• C) growth strategy
• D) diversification strategy

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Definitions:

Accounting Profits

The difference between a company's total revenue and its explicit costs, not including opportunity costs.

Savings Account

A deposit account held at a bank or financial institution that pays interest but typically has limited transactions.

Loan

Borrowed money that is expected to be paid back with interest to the lender, according to agreed terms and conditions.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing profits exceeding the opportunity costs of all resources used by a firm.