When Bell Canada diversified by forming BCE, it acquired interests in businesses like trust companies, pipelines, and real estate. This is an example of
A) vertical integration.
B) cooperative diversification.
C) concentric diversification.
D) cost leadership.
E) conglomerate diversification.

Question

Quizplus · Accepted Answer

BCE's acquisition of interests in businesses that are unrelated to its core business of telecommunications is an example of conglomerate diversification. This strategy involves expanding into businesses that are not related to the company's existing products or markets in order to reduce risks and improve profitability.

When Bell Canada Diversified by Forming BCE, It Acquired Interests