A company can shield itself from the adverse effects of business cycles, unexpected competition, and other economic fluctuations while operating several unique businesses in different markets by using _____.
A) a retrenchment strategy
B) unrelated diversification
C) a differentiation strategy
D) related diversification

Question

Quizplus · Accepted Answer

Unrelated diversification involves a company operating multiple businesses that are not related to each other, which can help spread risk and reduce the impact of adverse conditions in any one market or industry.

A Company Can Shield Itself from the Adverse Effects of Business