When a company enters a new business in a different industry from that in which it currently operates and does not expect to achieve any value chain synergies,this is ________ diversification.
A) Financial
B) Capital-driven
C) Unrelated
D) Opportunistic

Question

Quizplus · Accepted Answer

Unrelated diversification refers to a company entering a new business in a different industry without any expectation of achieving value chain synergies. This type of diversification is also known as conglomerate diversification. Financial diversification, on the other hand, involves a company investing in different financial instruments such as stocks and bonds to spread out its risk. Capital-driven and opportunistic diversification are not commonly used terms in the context of business diversification.

When a Company Enters a New Business in a Different