Which of the Following Is Not True of Unrelated Diversification

Multiple Choice

Which of the following is not true of unrelated diversification?

A) Involves buying firms outside of the company's primary lines of business
B) Involves shifting from a firm's core product lines into those which are perceived to have higher growth potential
C) Generally results in higher returns to shareholders
D) Generally requires that the cash flows of acquired businesses are uncorrelated with those of the firm's existing businesses
E) A and D only