Cozy Threads, a clothing retailer, recently expanded its business by purchasing a regional airline. This business expansion is an example of
A)vertical integration.
B)unrelated diversification.
C)related diversification.
D)horizontal integration.
E)synergy.

Question

Quizplus · Accepted Answer

Unrelated diversification occurs when a company expands its operations into an entirely different industry, as Cozy Threads did by purchasing a regional airline.

Cozy Threads, a Clothing Retailer, Recently Expanded Its Business by Purchasing