A Company That Is Already Diversified May Choose to Broaden

Multiple Choice

A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because

A) it has resources or capabilities that are eminently transferable to other related or complementary businesses.
B) the company's growth is sluggish and it needs the sales and profit boost that a new business can provide.
C) management wants to lessen the company's vulnerability to seasonal or recessionary influences or to threats from emerging new technologies.
D) it wants to make new acquisitions to strengthen or complement some of its present businesses.
E) All of these.