Related Diversification Is ________ Unrelated Diversification

question 12

Multiple Choice

Related diversification is ________ unrelated diversification.

• A) less effective than
• B) more effective than
• C) just as effective as
• D) less profitable than
• E) None of the answer choices is correct.

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Definitions:

Credit

An entry on the right side of a double-entry bookkeeping system that increases liabilities and equity or decreases an asset or expense.

Cash Received

The amount of money received by a company during a period from various sources including operations, investments, and financing.

Customer

An individual or entity that purchases goods or services from a business, essential for the revenue-generating activities of the company.

Revenue

The overall sum of revenue produced from selling goods or providing services tied to a business's core activities.