When a firm diversifies into ________ businesses,the primary potential benefits to be derived come from ________ relationships-those businesses that share intangible and tangible resources.
A) related; hierarchical
B) unrelated; hierarchical
C) related; horizontal
D) unrelated; horizontal

Question

Quizplus · Accepted Answer

A firm may diversify into related businesses. Here, the primary potential benefits to be derived come from horizontal relationships, that is, businesses sharing intangible resources (e.g., core competencies such as marketing) and tangible resources (e.g., production facilities, distribution channels).

When a Firm Diversifies into ________ Businesses,the Primary Potential Benefits