An effort to diversify into nonrelated markets is most likely to be undertaken when firms undergo:
A) Horizontal integration
B) Vertical integration
C) Conglomerate integration
D) None of the above

Question

Quizplus · Accepted Answer

Conglomerate integration involves diversifying into nonrelated markets, so this is the most likely choice for a firm looking to do so. Horizontal integration involves merging with or acquiring firms in the same industry, and vertical integration involves merging with or acquiring firms in the same supply chain. Neither of these options would necessarily lead to diversification into nonrelated markets.

An Effort to Diversify into Nonrelated Markets Is Most Likely