Growth through diversification out of an industry into an unrelated industry is called
A) concentration.
B) horizontal growth.
C) concentric diversification.
D) vertical growth.
E) conglomerate diversification.

Question

Quizplus · Accepted Answer

Conglomerate diversification is when a company expands into unrelated industries to minimize risk and maximize profits. This type of growth is often pursued when a company has reached its maximum potential within its current industry or when there is little room for growth.

Growth Through Diversification Out of an Industry into an Unrelated