Nahar Gift Shop (Scenario)
Nisreen has just won the equivalent of $60,000 in a talent competition. Subsequently, she decides to start her own business and opens a gift shop.
-A business broker hears that Nisreen is interested in purchasing a business and approaches her with an offer to sell her a company that owns a patent on a skin care product. If she buys this firm, she will be using a(n) ________ strategy.

Question

Quizplus · Accepted Answer

Unrelated diversification involves entering into a business that is different from the company's current operations. Since a gift shop and a skin care product company are unrelated industries, buying the firm would be an unrelated diversification strategy.