A Key Issue in Companies Pursuing an Unrelated Diversification Strategy

Multiple Choice

A key issue in companies pursuing an unrelated diversification strategy is:

A) how wide a net to cast in building a portfolio of unrelated businesses.
B) whether to keep or divest businesses whose technological approaches do not match the overall technology and R&D strategy of the corporation.
C) how quickly to divest businesses whose competitive strategies do not closely match the competitive strategies of sister businesses.
D) whether to build shareholder value via paying higher dividends or via actions aimed at increasing the company's stock price.
E) whether to acquire new businesses that offer the potential for achieving greater economies of scope or businesses that offer the potential for achieving greater economies of scale.