________ diversification is when a firm enters a different business that has little horizontal interaction with other businesses of a firm.
A) Horizontal
B) Synergistic
C) Related
D) Unrelated

Question

Quizplus · Accepted Answer

With unrelated diversification, unlike related diversification, few benefits are derived from horizontal relationships, that is, the leveraging of core competencies or the sharing of activities across business units within a corporation. Instead, potential benefits can be gained from vertical (or hierarchical) relationships which are the creation of synergies from the interaction of the corporate office with the individual business units.

________ Diversification Is When a Firm Enters a Different Business