Question

Large companies should diversify their products and services across many different industries to be armoured against...

Large companies should diversify their products and services across many different industries to be armoured against cyclical downturns in individual industries. Do tou agree or disagree with the atatement? Why or why not?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

I agree with this statement because various company should always try to diversify their business in order to hedge against cyclical risk.

There is always a business cycle for specific industry and business should diversify into different industry in order to hedge its exposure into different segment.

Exposure into different segments of the market can lead to elimination of systematic risk and unsystematic risk associated with specific industry as loss in one segment can be negated by gain in other segment.

A business should always get itself diversified into various related sector in order to gain from favourable cycles and in order to protect itself from adverse cycle so that the exposure of business does not just kept concentrated in one segment and it is diversified into whole market so that it can be protected against economic downslide.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Many large international companies target sections of their Web sites to the different world market where...
Many large international companies target sections of their Web sites to the different world market where their products are sold. For instant McDonald's www.McDonals.com included customized pages for each fifty-plus countries where its restaurants are stablished. Assume that you work for a company that is considering expanding its website for international markets. You have assigned to investigate and report your finding on the differences and similiraties between regional section of the company's sites. To research your report, examine the websites...
QUESTION 1 A code of ethics ________________________________. should be standardized across companies following the AMA guidelines...
QUESTION 1 A code of ethics ________________________________. should be standardized across companies following the AMA guidelines is only necessary for large corporations needs to be vague so that it could be used to understand any potential situation should specify expected behavior in as many potential situations as possible may be more effective in guiding employee behavior than external governmental regulation 1 points   QUESTION 2 For most foods products that are imported into the US from the European Union, companies have...
Bentley Industrial Services Management wants to acquire Lerner Industrial Services Management Corporation. Lerner is willing to...
Bentley Industrial Services Management wants to acquire Lerner Industrial Services Management Corporation. Lerner is willing to be acquired at a minimum price of $121 million and nothing less. However, two of Bentley’s major shareholders are not in favor of this acquisition. Lerner had no scientific basis for asking for a minimum of $121 million. Industry Structure The industry is about $120 billion in Industrial facility services management including engineering energy needs that include heating, ventilation, and air conditioning. The industry...
Discuss the idea that “Monopolies are bad for social welfare, compared to perfect competition”. Do you...
Discuss the idea that “Monopolies are bad for social welfare, compared to perfect competition”. Do you agree or disagree? Why? Are there times when your answer would be different? Given that for an industry to be perfectly competitive, the product must be identical across all providers, are they bad for private welfare? As you consider the perfectly competitive market structure versus monopolistic competition and oligopoly, would you rather have efficiency or variety? That is, one opportunity cost of the variety...
My orgnazation is UBER Uber is one of the biggest application based taxi services across the...
My orgnazation is UBER Uber is one of the biggest application based taxi services across the world. Who provide employment to thousands of the drivers across the globe and connect the network of the specific drivers in the most efficient way. Some of the main competitive advantage strategies of the Uber are as follows: Uber is an international brands and provides its services across the globe which directly make him a mostly influential service provider across the globe. Uber does...
1. Should content providers and advertisers panic because of ad blocking technology, or will consumers figure...
1. Should content providers and advertisers panic because of ad blocking technology, or will consumers figure out that the internet will collapse without advertising revenue? With the rise of Adblockers becoming more significant in everyday use content providers are understandably going to become panicked. From the webpage ‘Native Advertising Institute they explain just how much the use of Adblockers has increased. “eMarketer predicts 1 of every 3 Internet users will use ad blockers by 2017, more than twice the 15%...
1 Which of the following should be done for more effective"search engine marketing?" a. Bid on...
1 Which of the following should be done for more effective"search engine marketing?" a. Bid on Google AdWords b. Use page titles and key words within each page c. Retarget individuals who have searched (e.g., googled) key words. d. All of the above 2 A wholesaler/distributor: a. Typically works on a consignment basis. b. Is independently owned and operated, and sells the products of many manufacturers. c. Typically carries very little, if any, inventory. d. All of the above are...
do you agree or disagree and why with the information below: Corporate-level strategies for Mitsubishi Corp....
do you agree or disagree and why with the information below: Corporate-level strategies for Mitsubishi Corp. Vertical integration is a tactic that a company such as Mitsubishi can use to improve its cost leadership position (Strategic Management, 2014c, pp. 249-252). This would work well for a company such as Mitsubishi because the company already has experience with this tactic. Due to the fact that Mitsubishi Corporation already forms many of the links in the value chain it likely will be...
23. In the perfectly competitive model, what kind of products are all firms assumed to be...
23. In the perfectly competitive model, what kind of products are all firms assumed to be producing? a. identical products b. differentiated products c. well-advertised products d. unique products 27. Under what circumstance will a firm in a perfectly competitive industry expand output? a. when marginal cost is less than marginal revenue b. when marginal revenue is less than average revenue c. when marginal revenue is less than average total cost d. when marginal cost is less than average total...
Daryl Bank is an investment broker with Bank, Tank, & Shank a full service financial services...
Daryl Bank is an investment broker with Bank, Tank, & Shank a full service financial services firm serving the regional area of southern West Virginia. From the corporate offices in Beckley, Daryl manages a large number of clients throughout the southern part of the state. Daryl is very customer service oriented and makes a personal effort to visit every client at least twice a year, even if it means traveling to his or her hometown. He usually travels to different...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT