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kotykmax [81]
3 years ago
7

Discuss how firms can benefit from (1) related diversification and also can benefit from (2) unrelated diversification. Discuss

some of the key concepts that can explain firm success or firm failure from selecting one or the other diversification strategy.Discuss how firms can benefit from (1) related diversification and also can benefit from (2) unrelated diversification. Discuss some of the key concepts that can explain firm success or firm failure from selecting one or the other diversification strategy.
Business
1 answer:
igor_vitrenko [27]3 years ago
6 0

Answer:

Benefits from related & unrelated diversification.

Explanation:

Firms' benefit(s) from related diversification :

  • Building & developing market power - By sharing the  related diversification going on in entire industry.
  • Sharing activities & market linkages with other businesses - Associated diversification implies forward & backward linkages.

Firms' benefit(s) from unrelated diversification :

  • Leveraging & enhancing different core competencies, USP - By Focusing on self paced unique diversification
  • Creating a different ostentation brand - Creating a strong brand, capable of becoming a market leader, rather than market follower

Key concepts explaining firm success or failure from either diversification are implicit within above explanation.

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1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.

2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company

3. B. Preferred Stock

Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.

If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders

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8 0
3 years ago
Suppose the reserve requirement is 5​%. What is the effect on total checkable deposits in the economy if bank reserves increase
madam [21]

Answer:

D. ​$1 comma 000 billion increase

Explanation:

The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.

In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.  

If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.

5 0
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Which principle of design is used to make one element of a design stand out?
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B is the correct answer.
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Under the rule of 70, if the GDP per capita growth rate in the United States is 2.3%, standards of living double every:
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Under the rule of 70, if the GDP per capita growth rate in the United States is 2.3%, standards of living double every 70/2.3 = 30.43 years.

<h3>What is Gross Domestic Product (GDP)?</h3>

The term "Gross Domestic Product," or GDP, refers to the total monetary worth of all finished goods and services produced (and marketed) within a nation within a specific time period (typically 1 year).

GDP Growth Rate:

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The price deflator, a statistical tool, is used to convert nominal GDP to constant prices.

To know more about Gross domestic product (GDP), here

brainly.com/question/1383956

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8 0
2 years ago
Why would a business ower lower the price of a product
Ray Of Light [21]

Answer:

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Explanation:

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