Which of the Following Explains Why Related Diversification Is Considered

question 33

Multiple Choice

Which of the following explains why related diversification is considered to involve a lower level of risk the unrelated diversification?

• A) It achieves a more balanced portfolio.
• B) It focuses on existing products and markets.
• C) It utilises the skills of alliance partners.
• D) It leverages existing strategic capability.

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Definitions:

Imports and Exports

The practice of bringing goods and services into a country (imports) and sending goods and services out of a country (exports) to engage in international trade.

United States

A country located in North America comprised of 50 states, a federal district, five major self-governing territories, and various possessions, known for its diverse geography, culture, and economy.

Countertrade

A method of trade in which goods or services are exchanged for other goods or services rather than for money.

Equivalent Amount

A value or quantity that corresponds or is considered equal in value, function, or significance to another in a different context or format.