Question

In: Finance

28. A strategy of diversification is designed to increase shareholder value by acquiring other companies. Which...

28. A strategy of diversification is designed to increase shareholder value by acquiring other companies. Which of the following is not a good reason to diversify?

a. leverage your resources and capabilities

b. reduce cost/improve access to resources

c. acquire technology assets or products that complement your present business

d. company for sale can be bought cheap

e. take advantage of a powerful or known brand

29. In addition to foreign acquisitions and export strategies, licensing, franchising and strategic alliances can be effective ways to enter into and compete in foreign markets.

a. true

b. false

10.

30 Which of the following is not a good reason to compete in International markets?

a. access new customers

b. lower costs

c. gain access to resources and capabilities in foreign markets

d. spread business risk over a wider market base

e. give management some international experience

f. exploit your core competencies

Expert Solution

28) Ans. d - Company for sale can be bought cheap

29) Ans. a - True

30) Ans. f - Exploit your core competencies

jeff jeffy answered 2 years ago

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