Which of the following is NOT an advantage inherent in related diversification?
A) Reducing business dependence
B) Reducing overhead
C) Scope
D) Synergy
E) Reducing risk

Question

Quizplus · Accepted Answer

Scope is not an inherent advantage of related diversification. Related diversification focuses on entering or expanding in industries related to a company's current operations, aiming at leveraging existing competencies, achieving synergies, reducing risk, and possibly reducing overhead costs through shared resources. Scope, in this context, refers to the breadth of areas a business operates in, which is not an advantage but rather a characteristic of how diversified the company is.

Which of the Following Is NOT an Advantage Inherent in Related