The highest level of diversification is
A) related constrained
B) related linked
C) unrelated
D) unconstrained

Question

Quizplus · Accepted Answer

The highest level of diversification is unrelated diversification, which means a company enters into industries or markets that are not related to its current business. This type of diversification carries the highest level of risk but also has the potential for the highest level of return. Related constrained and related linked diversification strategies involve entering into industries or markets that are related in some way to the company's current business, and unconstrained diversification is not a recognized type of diversification strategy.

The Highest Level of Diversification Is