This exercise is important because it covers the concept of corporate diversification. The goal of this exercise is to identify when corporate diversification creates a competitive advantage and when it does not. You should be familiar with the corporate diversification and firm performance section of the text prior to completing the following questions.

The goal of this activity is to demonstrate your understanding of different types of corporate diversification.

The selling of Busch Entertainment, a theme park unit that owns SeaWorld, by Belgium$-$based AB InBev after the acquisition of Anheuser$-$Busch by InBev to ensure a focus on AB InBev$$s core business, is an example of

Multiple Choice

franchising.

taper integration.

a diversification premium.

a principal$$agent problem.

restructuring.