A Firm Is Engaged in Related Constrained Diversification When It

question 32

True/False

A firm is engaged in related constrained diversification when it derives 70-95 per cent of revenue from a single business.

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Definitions:

Representativeness Heuristic

A cognitive bias in decision making where the likelihood of an event is estimated based on how closely it resembles the typical case.

Thinking Strategy

Techniques or methods applied to solve problems, make decisions, or generate creative ideas more effectively.

Existing Prototype

A preliminary model of something from which other forms are developed or copied.

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their availability in memory, making them seem more common or frequent than they are.