Companies That Diversify by Adding More Brands and Businesses to Portfolios

question 64

Multiple Choice

Companies that diversify by adding more brands and businesses to portfolios can have a negative impact on

• A) corporate culture.
• B) profitability.
• C) research and development.
• D) diseconomies of scale.
• E) the core product.

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Definitions:

Social-Cognitive Theorists

Psychologists who study how people learn by observing others and how they interpret and model their behaviors based on their beliefs.

Appropriate Circumstances

Suitable or fitting conditions that meet the needs of the situation or fulfill the requirements of a specific context.

Aggressive Behavior

Any physical or verbal action intended to hurt or destroy, whether directed towards oneself or others.

Social Categorization

The cognitive process of classifying people into groups based on shared characteristics.