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.

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Definitions:

Competitive Advantage

A condition that enables a company or country to produce goods or services at a lower price or in a more desirable fashion for customers than its competitors.

Unique Product

A product that stands out from others due to its distinctive characteristics, features, or innovation.

Competitive Advantage

The unique positioning and strategy that enable a business to generate greater sales or margins than its competition.

Barriers to Entry

Economic, procedural, or regulatory hurdles that inhibit new competitors from easily entering an industry or area of business.