For a firm's diversification to be considered related constrained:
A) more than 70% of its revenue must come from the dominant business,and all businesses share product,technological and distribution linkages.
B) less than 70% of its revenue comes from the dominant business,and the businesses share product,technological and distribution linkages.
C) between 70% and 80% of revenues come from a single business.
D) a firm must be concentrated in a large number of very different industries.

Question

Quizplus · Accepted Answer

In a related constrained diversification strategy, less than 70% of the firm's revenue comes from the dominant business, and the businesses share product, technological, and distribution linkages. This means that the firm is expanding into related but distinct industries where there are opportunities to leverage existing capabilities or resources, creating synergies and competitive advantages.

For a Firm's Diversification to Be Considered Related Constrained