The essential requirement for different businesses to be "related" is that
A)their value chains exhibit competitively valuable cross-business commonalities.
B)the products of the different businesses are bought by many of the same types of buyers.
C)the products of the different businesses are sold in the same types of retail stores.
D)the businesses have several key suppliers in common.
E)the production methods they employ both entail economies of scale.

Question

Quizplus · Accepted Answer

The essential requirement for different businesses to be "related" is that their value chains exhibit competitively valuable cross-business commonalities. This means that the businesses should share similar processes, technologies, or inputs that lead to cost savings or other advantages, making them related to each other. The other options such as buying behavior of customers or common retail stores are not necessary for businesses to be related.

The Essential Requirement for Different Businesses to Be "Related" Is