A Noted Professional Art Academy Has Founded an "Artists and Friends

question 41

Multiple Choice

A noted professional art academy has founded an "artists and friends" travel company specializing in tours for
Artists to scenic locales,using its faculty as traveling teachers. In addition,the art academy has purchased a framing company to both make frames for academy art works,but also to sell museum-quality framing services to the public. The art academy is engaging in diversification based on______relatedness.

• A)operational
• B)corporate
• C)intellectual
• D)constrained

---

Definitions:

Misrepresentation

An untruthful assertion by one of the parties about a material fact.

Material Fact

A fact that is significant or essential to the issue or matter at hand, often affecting the outcome of a legal case.

Fraudulent Misrepresentation

The tort that occurs when a misrepresentation is made with the intent to facilitate personal gain and with the knowledge that it is false.

Justifiable Reliance

The principle that a party has acted upon another's representation with a reasonable belief that it was true, often relevant in cases of fraud or misrepresentation.