For a firm's diversification strategy to be considered related constrained:
A)more than 70 per cent of its revenue must come from the dominant business and all businesses share product, technological and distribution linkages
B)less than 70 per cent of its revenue comes from the dominant business, but the businesses share direct product, technological and distribution linkages
C)70-80 per cent of revenue comes from a single business
D)the firm must be concentrated in a large number of very different industries

Question

Quizplus · Accepted Answer

A related constrained diversification strategy means that there are direct product, technological, and/or distribution linkages between the different businesses within the firm's portfolio. In this case, less than 70% of the revenue comes from the dominant business, but there are still linkages between the different businesses.

For a Firm's Diversification Strategy to Be Considered Related Constrained