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:

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in the production of goods.

Output

The total amount of goods or services produced by a company, industry, or economy.

Average Educational Level

A metric that represents the average amount of formal schooling completed by a population or specific group of people.

Productivity of Labor

A measurement of the output produced by employees or labor within a specific period of time.