For a Firm's Diversification Strategy to Be Considered Related Constrained

question 43

Multiple Choice

For a firm's diversification strategy to be considered related constrained:

• A)more than 70 per cent of its revenue must come from the dominant business and all businesses share product, technological and distribution linkages
• B)less than 70 per cent of its revenue comes from the dominant business, but the businesses share direct product, technological and distribution linkages
• C)70-80 per cent of revenue comes from a single business
• D)the firm must be concentrated in a large number of very different industries

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Definitions:

Underestimate

To judge something to be smaller or less important than it actually is.

Overestimate

To assess something as greater, more important, or more significant than it actually is.

Attractive

Having qualities that appeal to a sensory or aesthetic perception, often leading to a positive reaction from others.

Gain Weight

The process of increasing body mass, typically by accumulating fat or muscle mass.