Diversifying into New Businesses Is Justifiable Only If It

Multiple Choice

Diversifying into new businesses is justifiable only if it

A) results in increased profit margins and bigger total profits.
B) builds shareholder value.
C) helps a company escape the rigors of competition in its present business.
D) leads to the development of a greater variety of distinctive competencies and competitive capabilities.
E) helps the company overcome the barriers to entering additional foreign markets.