The empirical evidence shows that unrelated diversification is an effective means of smoothing out the business cycle.

Question

Quizplus · Accepted Answer

Empirical evidence generally suggests that unrelated diversification often fails to smooth out the business cycle for companies, as it can lead to inefficiencies and a lack of focus on core competencies, making businesses more vulnerable to economic fluctuations.

The Empirical Evidence Shows That Unrelated Diversification Is an Effective