Multiple Choice
Diversification ought to be considered when:
A) a company's profits are being squeezed and it needs to increase its net profit margins and return on investment.
B) a company lacks sustainable competitive advantage in its present business.
C) a company begins to encounter diminishing market growth and stagnating sales prospects in its mainstay business.
D) a company has run out of ways to achieve a distinctive competence in its present business.
E) a company is under the gun to create a more attractive and cost-efficient value chain.
Correct Answer:

Verified
Correct Answer:
Verified
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