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:

Property

refers to items, both tangible and intangible, that are owned by individuals or entities and have value.

RUPA

The Revised Uniform Partnership Act, overseeing the functioning of partnerships within the United States.

Transferable Interest

A transferable interest refers to the share, right, or property that can be transferred from one party to another, often seen in the context of partnerships or membership interests in limited liability companies.

Ownership Rights

Legal rights that convey the ability to possess, use, and dispose of property, intellectual property, or other assets.