A Strategy of Unrelated Diversification Is

question 68

Multiple Choice

A strategy of unrelated diversification is

• A)always a mistake.
• B)likely to be less risky than related diversification.
• C)not always as unrelated as it may seem e.g. the businesses may share some common attributes which can be exploited.
• D)always the last resort.

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Definitions:

Cognitive Schema

Mental structures that an individual uses to organize knowledge and guide cognitive processes and behavior.

Prototype

An original model or first form of something from which other forms are copied or developed.

Basic Concept

Fundamental ideas that underpin a subject or field of study, serving as the foundation for further knowledge and understanding.

Mental Set

A psychological tendency to approach situations in a certain way because that method has worked in the past, which can limit problem-solving abilities.