Retrenching to a Narrower Diversification Base Can Be Attractive or Advisable

Multiple Choice

Retrenching to a narrower diversification base can be attractive or advisable EXCEPT when:

A) certain businesses have questionable long-term potential.
B) a diversified company has businesses that have little or no strategic or resource fits with the "core" businesses that management wishes to concentrate on.
C) certain business units are weakly positioned and show poor prospects for providing a good return on investment.
D) market conditions in a once-attractive business have badly deteriorated.
E) business units are cash cows with promising futures.