United Continental Holdings includes Continental Airlines,United Airline,Chelsea Food Services,and United Cruises,because it was thought that they can accomplish more joined together than they can operating as separate units.Which advantage of related diversification does this best represent?

Question

Quizplus · Accepted Answer

The joining of Continental Airlines, United Airlines, Chelsea Food Services, and United Cruises represents an advantage of related diversification called synergy, which is the ability of the combined companies to achieve greater efficiency and cost savings by working together. In this case, the companies can share resources, such as aircrafts, kitchens, and ships, to reduce overall costs and increase profitability.

United Continental Holdings Includes Continental Airlines,United Airline,Chelsea Food Services,and United