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One Appealing Aspect of Unrelated Diversification Is That It

Question 61

Multiple Choice

One appealing aspect of unrelated diversification is that it:


A) expands a firm's competitive advantage opportunities to include a wider array of businesses.
B) spreads the business risk across a group of truly diverse industries.
C) increases strategic fit opportunities and the potential for a 1 + 1 = 3 outcome on the bottom line.
D) results in having more cash cow businesses than cash hog businesses.
E) facilitates capturing the financial fits among sister businesses (as compared to a strategy of related diversification) .

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