Multiple Choice
Diversification decisions by firms involve the following key issues:
A) The attractiveness of the industry to be entered and the potential for competitive advantage
B) The potential for the diversification to increase growth and reduce risk
C) The opportunities for exploiting economies of scope in resources and capabilities
D) The benefits of synergy relative to the costs or coordination.
Correct Answer:

Verified
Correct Answer:
Verified
Q26: When diversification combines two businesses in different
Q27: The British fashion company,Burberry,is considering diversifying into
Q28: Diversification has been an important source of
Q29: The capital asset pricing model predicts that
Q30: Economies of scope may be viewed as
Q32: A critical advantage of diversified over specialized
Q33: A dominant trend in corporate strategy over
Q34: Several decades of empirical evidence indicates that
Q35: The expression "conglomerate discount" means:<br>A)The ability of
Q36: The principle difference between the "parenting advantage"