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Question
Which of the following statements is true regarding unrelated diversification?
A) The bureaucratic costs associated with managing unrelated diversification are much greater than those associated with related diversification.
B) An organization pursuing a strategy of unrelated diversification tries to obtain value by sharing resources or by transferring functional skills from one division to another.
C) Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure.
D) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.
Answer
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