Question

A company should pursue related diversification instead of unrelated diversification when
a) the company's core skills create value by resource sharing and by transferring competencies between businesses.
b) the company's core skills are highly specialized and have few applications outside the core business.
c) the company's top management is skilled at acquiring and turning around poorly run enterprises.
d) the company's main objective is to maximize growth.
e) the company's free cash flow is high enough to have funds available for investment.

Answer

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