The curvilinear relationship of corporate performance and diversification indicates that:
A) dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies.
B) the highest performing business strategy is related constrained diversification.
C) the less related the businesses acquired, the higher performing the organization.
D) none of the strategies consistently outperforms the others.

Question

Quizplus · Accepted Answer

The curvilinear relationship suggests that related constrained diversification, which involves businesses that are related and share resources, tends to perform better due to synergies and efficiencies, compared to unrelated diversification or dominant-business strategies.

The Curvilinear Relationship of Corporate Performance and Diversification Indicates That