A Big Advantage of Related Diversification Is That

question 39

Multiple Choice

A big advantage of related diversification is that:

• A) it offers ways for a firm to realize 1 + 1 = 3 benefits because the value chains of the different businesses present competitively valuable cross-business relationships.
• B) it is less capital intensive and usually more profitable than unrelated diversification.
• C) it involves diversifying into industries having the same kinds of key success factors.
• D) it is less risky than either vertical integration or unrelated diversification due to lower capital requirements.
• E) it passes the industry attractiveness test and thus offers the best route to 2 + 2 = 4 benefits.

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Definitions:

Chronic Dyspareunia

Persistent or recurring pain during sexual intercourse, considered a long-term condition.

Sexual Interest Arousal Disorder

A sexual dysfunction characterized by a lack or reduced sexual interest and arousal, which can significantly impact a person's relationships and mental health.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a publication by the American Psychiatric Association that provides a comprehensive classification of mental disorders.