Which Is the Better Approach to Diversification-A Strategy of Related

question 11

Essay

Which is the better approach to diversification-a strategy of related diversification or a strategy of unrelated diversification? Explain and support your answer.

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Definitions:

Spreading Activation Network

A model in cognitive psychology that explains how concepts in memory become activated, spreading across associated concepts, facilitating retrieval of related information.

Activation

The initiation or triggering of action, response, or increased function in biological and mechanical systems.

Cognitive Strategies

Techniques or methods used to enhance learning, memory, or problem-solving abilities.

Mental Shortcuts

A general term for heuristics, which are simple, efficient rules, used by the brain to form judgments and make decisions.