Related Diversification Differs from Unrelated Diversification in Which of the Following

question 6

Multiple Choice

Related diversification differs from unrelated diversification in which of the following ways?

• A) Related diversification is connected to the organization's dominant business; unrelated diversification is not
• B) Unrelated diversification is connected to the organization's dominant business; related diversification is not
• C) Single business firms use related diversification and never use unrelated diversification
• D) Single business firms use unrelated diversification and never use related diversification

---

Definitions:

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers pay to fund their state's unemployment insurance.

Sales Taxes Payable

The liability account used to record the sales tax collected from customers by a seller, which is due to be paid to the government.

Cash Sales

Transactions in which goods or services are paid for and received at the time of the sale, using cash or equivalent.

Sales Taxes

Taxes imposed by governments on the sale of goods and services.