BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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conglomerate diversification.
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horizontal integration.
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vertical integration.
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concentric integration.
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Detailed explanation-1: -Answer. Answer: Horizontal integration occurs when a firm enters a new business (either related or unrelated) at the same stage of production as its current operations.
Detailed explanation-2: -Answer: Concentric Diversification: It is similar to related diversification, wherein the new business entered into by the firm is associated with the existing business by way of process, technology or market.
Detailed explanation-3: -Horizontal diversification is when you acquire or develop new products or services that are complementary to your core business and appeal to your current customers. For example, an ice-cream business adds a new type of confectionary into its product line.
Detailed explanation-4: -The correct answer is Net present value technique may be defined as the Excess of present value of project cash inflows over that of out flows.
Detailed explanation-5: -Resource sufficiency implies the availability or otherwise of plant and machinery and technical knowledge on how to produce the product.