The More "Constrained" the Relatedness of Diversification

question 20

Multiple Choice

The more "constrained" the relatedness of diversification:

• A) the fewer the linkages between the businesses within the portfolio owned by the firm.
• B) the wider the variation in the portfolio of businesses owned by the firm.
• C) the more links there are among the businesses owned by an organization.
• D) the lower the proportion of total organizational revenue derived from the dominant business.

---

Definitions:

Procedural Unconscionability

A legal principle that occurs when the terms of a contract or the manner in which it was negotiated are so unfair to one party that they are void of meaningful choice.

Substantive Unconscionability

A condition where a contract or a specific contract term is so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Contract Language

The specific phrasing and terminology used in contracts to clearly define rights, responsibilities, obligations, and other agreements between parties.

Usury Statute

Laws that set maximum interest rates that can be charged on loans to prevent predatory lending practices.