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Question(s) / Instruction(s):

A fundamental weakness of unrelated diversification is

A             The tendency of corporate managers to place too much emphasis on investing in cash cows rather than promising cash hogs

B             Reducing a companys access to economies of scope

C             Greater potential for there to be too much diversity among the competitive strategies of the various business subsidiaries

D             The greater risk of getting trapped in tough struggles with strong competitors

E              That the greater the number of businesses a company is in and the more diverse they are, the harder it is for corporate managers to stay abreast of whats happening in each industry and each subsidiary, know much about the problems and issues each business confronts, and know what to do if a business unit stumbles and its results suddenly head downhill

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