Related diversification differs from unrelated diversification in which of the following ways?
A)Related diversification is connected to the organization's dominant business; unrelated diversification is not
B)Unrelated diversification is connected to the organization's dominant business; related diversification is not
C)Single business firms use related diversification and never use unrelated diversification
D)Single business firms use unrelated diversification and never use related diversification
E)A firm that uses related diversification always uses vertical integration; a firm that uses unrelated diversification never uses vertical integration

Question

Quizplus · Accepted Answer

Related diversification involves expanding into businesses that are related to the organization's dominant business, whereas unrelated diversification involves expanding into businesses that are not related to the organization's dominant business. Therefore, choice A is the correct answer. Choices C, D, and E are incorrect because single business firms may use both related and unrelated diversification, and the use of vertical integration is not limited to only related or unrelated diversification.

Related Diversification Differs from Unrelated Diversification in Which of the Following