The distinguishing factor between unrelated and related diversification strategies is that a firm using unrelated diversification strategy
A) has numerous businesses that are linked in some manner.
B) manages several businesses with no reasonable connection.
C) focuses on one specific product, typically in one market.
D) develops core competencies using its resources and capabilities.

Question

Quizplus · Accepted Answer

Unrelated diversification strategy refers to the management of several businesses that have no logical connection with each other. This means that the firm's various businesses are not linked in any way, and they may be involved in different industries or markets. The focus of the strategy is not on a specific product or market but on achieving financial benefits by managing different businesses under one umbrella.

The Distinguishing Factor Between Unrelated and Related Diversification Strategies Is