How is the acquisition of new business related to existing business activities in situations where company leaders base their diversification strategy on transferring competencies?
A) Unrelated
B) Not comparable
C) Opposed
D) Related
E) Identical

Question

Quizplus · Accepted Answer

When a company leaders base their diversification strategy on transferring competencies, the acquisition of new business is related to existing business activities. The company seeks to leverage their existing competencies, skills, and knowledge to enter into new business areas where they can use their existing capabilities to create value. This approach allows the company to capitalize on its existing strengths and minimize the risk associated with entering into new markets or industries.

How Is the Acquisition of New Business Related to Existing