Question

1 Diversification initiatives include all of the following except ___________________. joint ventures shareholder development mergers and...

1 Diversification initiatives include all of the following except ___________________.

joint ventures

shareholder development

mergers and acquisitions

strategic alliances

2. For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements?

The new business must be similar to existing businesses to benefit from a core competence

The competence must help the business gain strength relative to its competition

The collection of competencies should be unique, so that they cannot be easily imitated

The new business must have an established large market share

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Answer #1

Answer 1: Option B

Explanation: Through Diversification, a firm tries to enter a different industry so as to reduce the business risk. While JV (joint ventures), M&A (Mergers and Acquisitions) and Strategic alliances are methods towards diversification, shareholder development is not.

Answer 2: Option D

Explanation: the new business may not necessarily have an established large market share. Hence Option D is correct.

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