For a firm's diversification to be considered unrelated,the firm must earn:
A) less than 70% of its revenue from its dominant business and must have only limited links among its businesses.
B) more than 70% of its revenue from the dominant business of the firm and must have only limited links among its businesses.
C) less than 70% of its revenue from a dominant business and no common links among its businesses.
D) 98% of its revenue from a single business.

Question

Quizplus · Accepted Answer

To be considered unrelated, a firm must have less than 70% of revenue from a dominant business and no common links among its businesses. Choice A and B have incorrect statements. Choice D is extreme and not a realistic scenario for a diversified firm.

For a Firm's Diversification to Be Considered Unrelated,the Firm Must