Which of the Following Statements Is an Advantage of Related

question 20

Multiple Choice

Which of the following statements is an advantage of related diversification strategy?

• A) Related diversification strategy allows a firm to maintain several businesses that are not connected in any way.
• B) The sharing of resources is a key component of developing economies of scope and often increases a firm's competitive advantage.
• C) Related diversification strategies often achieve financial economies through the restructuring of business units.
• D) It can allow a sick or dying company to use capital generated in a profitable division to prop it up for a short period of time.

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Definitions:

Osteoclast Activity

The process involving osteoclast cells, which are responsible for bone resorption, part of the bone remodeling process.

Digestive System

The complex series of organs and glands responsible for the breakdown and absorption of nutrients, and the elimination of waste products from the body.

Osteoporosis

A condition characterized by decreased bone mass and density, leading to an increased risk of fractures.

Calcitonin

A substance secreted by the thyroid gland that assists in controlling blood calcium levels by preventing the breakdown of bone.