The purpose of _____ is to expand the firm's business operations to generate profits from valuable new products and services?
A) retrenchment
B) diversification
C) liquidation
D) cash cow
E) internal growth

Question

Quizplus · Accepted Answer

Diversification involves expanding a firm's business operations to include new products and services in order to generate profits from them. Retrenchment involves cutting back on business operations, liquidation involves selling off a firm's assets to pay creditors or distribute proceeds to shareholders, cash cow refers to a mature product or service that generates consistent profits, and internal growth involves expanding a firm's existing business operations.

The Purpose of _____ Is to Expand the Firm's Business