Which of the Following Is an Important Appeal of a Related

question 134

Multiple Choice

Which of the following is an important appeal of a related diversification strategy?

• A) Related diversification is an effective way of capturing valuable financial fit benefits.
• B) Related diversification offers more competitive advantage potential than does unrelated diversification.
• C) Related diversification offers significant opportunities to strongly differentiate a company's product offerings from those of rivals.
• D) Related diversification is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification.
• E) Related diversification is typically more profitable than unrelated diversification,which is a major factor in helping related diversification pass the attractiveness test.

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Definitions:

Adrenal Gland

An endocrine gland located above the kidney that produces various hormones, including adrenaline and steroids.

Pituitary Gland

A pea-sized gland at the base of the brain that secretes hormones regulating growth, metabolism, and reproductive processes.

Hypothalamus

A region of the brain responsible for producing hormones that control bodily functions like temperature, hunger, and sleep.

Infundibulum

A funnel-shaped structure; in the human body, it is part of organs such as the brain (connecting the pituitary gland to the hypothalamus) and the female reproductive system (the fallopian tubes).