Because unrelated diversification strategies at their best have only limited potential for creating long-term economic value for shareholders,it is essential that management:

Question

Quizplus · Accepted Answer

Since unrelated diversification has limited potential for creating long-term value, it is important for management to not compound the problem by taking a misguided approach. Instead, they should carefully evaluate the potential benefits and risks before pursuing such a strategy.

Because Unrelated Diversification Strategies at Their Best Have Only Limited