TL & Co Is Following a Related-Linked Diversification Strategy, and Soar Inc

question 24

Multiple Choice

TL & Co. is following a related-linked diversification strategy, and Soar Inc. is following a related-constrained diversification strategy. How do the two firms differ from each other?

• A) Soar Inc. generates 70 percent of its revenues from its primary business, while TL & Co. generates only 10 percent of its revenues from its primary business.
• B) Soar Inc. pursues a backward diversification strategy, while TL & Co. pursues a forward diversification strategy.
• C) TL & Co. will share fewer common competencies and resources between its various businesses when compared to Soar Inc.
• D) TL & Co. pursues a differentiation strategy, and Soar Inc. pursues a cost-leadership strategy, to gain a competitive advantage.

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Definitions:

Subduction Zones

areas at convergent plate boundaries where one tectonic plate moves under another, leading to geological activity.

Plate Boundaries

Plate boundaries are the edges where two or more of Earth's tectonic plates meet, categorized into three types: divergent, convergent, and transform, each characterized by specific geological activities and processes.

Deep Earthquakes

Seismic events that occur at depths greater than 70 kilometers below the Earth's surface, typically associated with subduction zones.

Wave Amplitude

The height between the trough and the crest of a wave, including ocean waves and seismic waves.