A Company Should Pursue Related Diversification Instead of Unrelated Diversification

Multiple Choice

A company should pursue related diversification instead of unrelated diversification when the company's

A) core skills are applicable to a wide variety of industrial and commercial situations.
B) core skills are highly specialized and have few applications outside the core business.
C) top managers are skilled at acquiring and turning around poorly run enterprises.
D) main objective is to maximize growth.
E) free cash flow is high enough that it has funds available for investment.