An Unrelated Diversification Strategy Can Create Value Through Two Types

question 61

True/False

An unrelated diversification strategy can create value through two types of financial economies: (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their assets, and selling them.

---

Definitions:

Cross-training

A training method where employees learn multiple roles within the organization, enhancing flexibility and understanding across different functions.

Document Delivery Company

A service provider focused on the rapid and secure transmission of documents between parties, often leveraging digital technologies.

Robotics Company

An enterprise engaged in the design, construction, operation, and application of robots and related technology.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.