Which of the Following Statements Is a Downside of Unrelated

question 38

Multiple Choice

Which of the following statements is a downside of unrelated diversification strategy?

• A) It does not allow a dying company to use capital generated in a profitable division to prop it up for a short period of time.
• B) A firm cannot manage multiple businesses without any reasonable connections.
• C) It is not possible to achieve financial economies.
• D) It can open a firm to higher levels of risk and uncertainty.

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Definitions:

Alcohol-based Rub

A disinfectant preparation for hands that contains alcohol, used to prevent infection by killing bacteria and viruses.

Medical Asepsis

Practices aimed at reducing the number and transmission of pathogens to prevent infections, often through sterilization and disinfection methods.

Skin Protectant

A substance applied to the skin to prevent irritation, damage from external factors, or to aid in healing, offering a barrier of protection.

Petroleum-based Product

A product derived from refining crude oil, such as gasoline, plastics, or synthetic fabrics.