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Which TWO of the Following Are Sensible Reasons for WRSX

Question 8

Multiple Choice

Which TWO of the following are sensible reasons for WRSX to avoid diversifying into new activities beyond its core marketing services?


A) There are no possibilities for economies of scope.
B) Research shows that unrelated diversification is negatively co-related with performance.
C) The potential for synergy is limited as the activities are not related.
D) Spreading risk across a wide range of activities reduces dependence on one market.

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