One of the Suggested Advantages of an Unrelated Diversification Strategy

Multiple Choice

One of the suggested advantages of an unrelated diversification strategy is that it

A) expands a firm's competitive advantage opportunities to include a wider array of businesses.
B) spreads the stockholders' risks across a group of truly diverse businesses.
C) increases strategic fit opportunities and the potential for a 1 + 1 = 3 outcome on the bottom line.
D) results in having more cash cow businesses than cash hog businesses.
E) facilitates capturing the financial fits among sister businesses (as compared to a strategy of related diversification) .