One Appealing Aspect of Unrelated Diversification Is That It

question 122

Multiple Choice

One appealing aspect of unrelated diversification is that it:

• A) expands a firm's competitive advantage opportunities to include a wider array of businesses.
• B) spreads the business risk across a group of truly diverse industries.
• C) increases strategic fit opportunities and the potential for a 1 + 1 = 3 outcome on the bottom line.
• D) results in having more cash cow businesses than cash hog businesses.
• E) facilitates capturing the financial fits among sister businesses (as compared to a strategy of related diversification).

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