Question

The option of sticking with the current business lineup makes sense when

a. corporate executives are satisfied with the current performance of each of their businesses and can use redirect capabilities and resources for expansion opportunities.
b. corporate executives are excited about market opportunities.
c. the company's present businesses offer attractive growth opportunities and can be counted on to generate good earnings and cash flows for shareholders.
d. companies are seeking multinational diversification.
e. corporate executives want to divest some businesses and retrench to a narrower diversification base.

Answer 1

The correct answer is c. the company's present businesses offer attractive growth opportunities and can be counted on to generate good earnings and cash flows for shareholders.

Step-by-step explanation:

A commercial line of products refers to products that are related to each other by some condition such as price, use or distribution. If, after evaluating the market, it is found that these products have a high growth potential, the best thing would be to continue betting on them within a reasonable period of time to reach a considerable level of sales. These products can in some way motivate the sale of others and therefore generate profits in the medium or short term for the shareholders.