With an unrelated diversification strategy, the types of companies that make par

Question

With an unrelated diversification strategy, the types of companies that make particularly attractive acquisition targets are: O a struggling companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital. O b companies offering the biggest potential to reduce labor costs. Oc. cash cow businesses with excellent financial fit. O d companies that are market leaders in their respective industries. O e companies that are employing the same basic type of competitive strategy as the parent corporation's existing businesses

Explanation / Answer

The correct answer is a

Explanation:- Successful unrelated diversification strategies based on restructuring require the parent company to have considerable expertise in identifying underperforming target companies and in negotiating attractive acquisition prices so that each acquisition passes the cost-of entry test.

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