Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are ____ to their existing business activities.
A) unrelated
B) not comparable
C) opposed
D) related
E) identical

Question

Quizplus · Accepted Answer

Company leaders that base their diversification strategy on transferring competencies tend to acquire new businesses that are related to their existing business activities. This is because they can leverage their existing competencies, capabilities, and resources to create synergy across the businesses, reduce costs, and increase efficiencies. Acquiring businesses that are unrelated or opposed to their existing activities may require significant investments in new competencies, and may not generate the same level of synergy and benefits.

Company Leaders That Base Their Diversification Strategy on Transferring Competencies