Which of the Following Is True of Related Diversification

question 23

Multiple Choice

Which of the following is true of related diversification?

• A)The motivations for related diversification are primarily financial rather than operational.
• B)Related diversification contributes to internal synergy through the sharing of production facilities and marketing and distribution skills.
• C)Related diversification occurs when a disproportionate number of a firm's current businesses face decline because of decreasing demand.
• D)Related diversification is typically the riskiest growth strategy in terms of financial outcomes.

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Definitions:

Alternative Solutions

Different approaches or methods to solve a problem or achieve a goal, offering options outside the conventional path.

Main Clause

An independent clause in a sentence that can stand alone as a complete thought because it contains a subject and a predicate.

Indirect Method

A communication strategy that involves implying or suggesting the main message rather than stating it outright.

Bad News

Unfavorable information or updates about situations or events, often requiring careful communication.