A noted professional art academy has founded an "artists and friends" travel company specializing in tours for artists to scenic locales, using its faculty as traveling teachers. In addition, the art academy has purchased a framing company to both make frames for academy art works, but also to sell museum-quality framing services to the public. The art academy is engaging in diversification based on ____ relatedness.
A) operational
B) corporate
C) intellectual
D) constrained

Question

Quizplus · Accepted Answer

The art academy is engaging in operational relatedness by using its faculty for travel tours and leveraging its framing company to serve both internal and external customers, thus sharing resources and capabilities across different business activities.

A Noted Professional Art Academy Has Founded an "Artists and Friends