Which of the following statements is a downside of unrelated diversification strategy?
A) It does not allow a dying company to use capital generated in a profitable division to prop it up for a short period of time.
B) A firm cannot manage multiple businesses without any reasonable connections.
C) It is not possible to achieve financial economies.
D) It can open a firm to higher levels of risk and uncertainty.
Correct Answer:
Verified
Q4: _ is created when a firm generates
Q17: In _ diversification strategy,a firm pursues businesses
Q18: The distinguishing factor between unrelated and related
Q18: In a single-product diversification strategy
A) a firm
Q19: The ultimate goal of an unrelated diversification
Q21: Firms pursuing related diversification to increase market
Q22: Firms diversify internationally to achieve economies of
Q22: _ costs refer to the costs a
Q24: Briefly explain the international scope test.
Q34: In vertical integration, forward integration occurs when
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