When Maple Leaf Gardens Ltd. acquired the Toronto Raptors, this was an example of related diversification because Maple Leaf already owned the Toronto Maple Leafs.

Question

Quizplus · Accepted Answer

Related diversification involves acquiring or investing in businesses that are related to the existing business. In this case, Maple Leaf Gardens Ltd. already owned the Toronto Maple Leafs and acquiring the Toronto Raptors was related diversification as both were sports teams and operated in the same industry.