A Company Should Pursue Unrelated Diversification Instead of Related Diversification

question 14

Multiple Choice

A company should pursue unrelated diversification instead of related diversification when:

• A) its core skills are highly specialized and have few applications outside its core business.
• B) the company's top managers are skilled at acquiring and turning around poorly run enterprises.
• C) its core technological skills are applicable to a wide variety of industrial and commercial situations.
• D) it wants to maximize growth.
• E) the bureaucratic costs of implementation do not exceed the value that can be created by realizing economies of scope.

---

Definitions:

Asynchronous Message

A form of communication where messages are sent and received at different times, without the need for immediate response.

Time Delay

The period between the initiation of an action or process and its effect or outcome, often seen in communication, signal processing, and transportation.

Live Video-conference

A real-time video communication session among two or more users located at different sites.

Intranet

A private network accessible only by an organization's members, employees, or others with authorization, used to share information, operational systems, or computing services within the organization.