Q253
A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. What form of diversification is this?
A.
Resource-based
B.
Unrelated
AnswerC.
Routine-based
D.
Replication-based
Answer: Option B
Solution
Answer: Option B
Solution:
A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. Unrelated form of diversification is this. Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.