What Makes Related Diversification an Attractive Strategy

question 57

Multiple Choice

What makes related diversification an attractive strategy?

• A)the ability to broaden the company's product line
• B)the opportunity to convert cross-business strategic fit into competitive advantage over business rivals whose operations don't offer comparable strategic fit benefits
• C)the potential for improving the stability of the company's financial performance
• D)the ability to serve a broader spectrum of buyer needs
• E)the added capability it provides in overcoming the barriers to entering foreign markets

---

Definitions:

Philanthropy

The act of donating money, goods, services, and time to support a socially beneficial cause, aiming to improve human welfare.

Equity

The value of an ownership interest in property or a business, minus liabilities; in finance, it often refers to stocks or shares representing ownership in a corporation.

Financing

The process of providing funds for business activities, making purchases, or investing.

Venture Capitalist

An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.