Which of the following is the best example of UNrelated diversification?

a. A pizza chain acquiring a chain of hamburger outlets

b. A TV broadcasting company buying a Hollywood movie studio

c. A cigarette maker diversifying into packaged food. a winery renting its tasting room, patio and garden for private receptions.

d. A chain of radio stations acquiring TV stations

Question

Social Studies

Kirsten House

13 July, 14:19

Which of the following is the best example of UNrelated diversification?

a. A pizza chain acquiring a chain of hamburger outlets

b. A TV broadcasting company buying a Hollywood movie studio

c. A cigarette maker diversifying into packaged food. a winery renting its tasting room, patio and garden for private receptions.

d. A chain of radio stations acquiring TV stations

+4

Answers (1)

Know the Answer?

Stephanie Warren · Answer 1

c. A cigarette maker diversifying into packaged food.

Explanation:

There are two types of diversifications: related an unrelated. We talk about unrelated diversification when some industry or business gets into new markets by manufacturing products which are new and have no relation with it. In this example, cigarettes have nothing to do with packaged food, so diversification is classified as unrelated.