Which of the Following Is Not True of Unrelated Diversification

question 9

Multiple Choice

Which of the following is not true of unrelated diversification?

• A) Involves buying firms outside of the company's primary lines of business
• B) Involves shifting from a firm's core product lines into those which are perceived to have higher growth potential
• C) Generally results in higher returns to shareholders
• D) Generally requires that the cash flows of acquired businesses are uncorrelated with those of the firm's existing businesses
• E) A and D only

---

Definitions:

Marketing Collaboration

A partnership between two or more organizations or departments to work together on marketing initiatives, aiming to leverage the strengths of each party for mutual benefit.

Integrated Marketing Communications

A strategic approach that combines various promotional tools and marketing techniques to ensure consistent messaging and maximize the impact on target audiences.

Consistent Message

The practice of ensuring all communications and promotional activities across various channels and mediums deliver a uniform message to reinforce brand recognition and values.

Group Travel

Organized travel planned for a collective of people who move together as a group, experiencing the journey and destinations together.