When diversification involves additions of a business related to the firm in terms of technology,markets or products,it involves:
A) Concentrated growth
B) Horizontal integration
C) Concentric diversification
D) Vertical diversification

Question

Quizplus · Accepted Answer

Concentric diversification involves adding businesses that are related to the firm in terms of technology, markets or products. This helps the firm to leverage its existing capabilities and resources to enter new markets or develop new products while staying within its core competency areas. Horizontal integration, on the other hand, involves adding businesses that are similar to the existing business in terms of products and services, while vertical diversification involves adding businesses that are upstream or downstream in the value chain. Concentrated growth refers to focusing on the existing business through increased investment or market penetration. Therefore, the best choice in this case is Concentric diversification.

When Diversification Involves Additions of a Business Related to the Firm