The Two Biggest Drawbacks or Disadvantages of Unrelated Diversification Are

Multiple Choice

The two biggest drawbacks or disadvantages of unrelated diversification are

A) the difficulties of passing the cost of entry test and the ease with which top managers can make the mistake of diversifying into businesses where competition is too intense.
B) the difficulties of capturing financial fit and having insufficient financial resources to spread business risk across many different lines of business.
C) the demanding managerial requirements and the limited competitive advantage potential due to lack of cross-business strategic fit benefits.
D) ending up with too many cash hog businesses and too much diversity among the competitive strategies of the businesses it has diversified into.
E) the difficulties of achieving economies of scope and conflicts/incompatibility among the competitive strategies of the company's different businesses.