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Which of the Following Is an Important Appeal of a Related

Question 55

Multiple Choice

Which of the following is an important appeal of a related diversification strategy?


A) Represents an effective way of capturing valuable financial fit benefits
B) Offers opportunities to transfer skills,expertise,technical know-how,or other capabilities from one business to another
C) Offers significant opportunities to strongly differentiate a company's product offerings from those of rivals
D) Is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification
E) Is typically more profitable than unrelated diversification,which is a major factor in helping related diversification pass the attractiveness test

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