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Which of the following best describes a tough decision for a company considering diversification through acquisition?
asked
Mar 3, 2023
in
Business
by
BenelBerino
whether to pay a high price for a successful company or a low price for a struggling company
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A diversification strategy should avoid adding businesses that make excessive demands on nonfinancial resources, including which of the following?
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In justifying diversification as a strategy to build shareholder value, the ______ test says that diversifying into a new business must offer potential for the company's existing business and the new business to perform better after consolidation than as stand-alone businesses.
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In justifying diversification as a strategy to build shareholder value, the ______ test says that entering the target industry shouldn't be so costly that it takes away the potential for profitability.
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As a strategy for diversification, ______ allows a company to move straight to building a strong market position in the target industry without getting tangled up in launching a start-up.
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In justifying diversification as a strategy to build shareholder value, the ______ test says that the industry to be entered through diversification must offer an opportunity for profits and return on investment that is equal or better than that of the company's present business.
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Which of these are key strategic decisions that top-level managers must make in crafting a company's diversification strategy?
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When two companies combine via a merger, their resource and competitive capabilities are _____ if they had combined via an acquisition.
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It is important for a diversified company to have a healthy ______ that can support the financial requirements of the business lineup.
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The two necessary conditions for producing valid industry attractiveness scores are
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