The Fastest and Easiest Way for a Firm to Diversity

Multiple Choice

The fastest and easiest way for a firm to diversity its portfolio of businesses is through acquisition because:

A) of barriers to entry in many industries.
B) it is difficult and time intensive for companies to develop products that differ from their current product line.
C) innovation in both the acquired and the acquiring firm is enhanced by the exchange of competencies resulting from acquisition.
D) unrelated acquisitions are usually uncomplicated since the acquired firm is allowed to continue to function independently as it did before acquisition.