Benefits derived from horizontal and hierarchical relationships are mutually exclusive.

Question

Quizplus · Accepted Answer

Benefits derived from horizontal (related diversification) and hierarchical (unrelated diversification) relationships are not mutually exclusive. Many firms that diversify into related areas benefit from information technology expertise in the corporate office. Similarly, unrelated diversifiers often benefit from the best practices of sister businesses even though their products, markets, and technologies may differ dramatically.

Benefits Derived from Horizontal and Hierarchical Relationships Are Mutually Exclusive