Moves to improve a diversified company's overall performance do not include _______.

A. restructuring the company's business lineup and putting a whole new face on the company's business makeup.
B. broadening the company's business scope by making new acquisitions in new industries.
C. sticking closely to the existing business lineup and pursuing the growth opportunities presented by these businesses.
D. selling businesses too late and at too low a price.
E. divesting weak-performing businesses and retrenching to a narrower base of business operations.

Respuesta :

Answer:

D. selling businesses too late and at too low a price

Explanation:

A diversified company refers to a business organization whose product portfolio and businesses are diverse, dealing in different kinds of products, and operating different businesses.

For example, a company may deal in tobacco products and stationery products at the same time. Such companies are characterized by unrelated products and businesses.

A diversified company may follow strategies such as harvest, retrenchment, restructuring and divestment strategy for improvement of overall performance.

Selling loss making businesses at the right time to avoid further losses refers to divestment strategy. Selling loss making businesses too late and at too low a price points towards poor divestment strategy, as it would on the contrary deteriorate existing performance.