Question

Sales of watches among teenagers and twenty-somethings are declining rapidly as this age group uses cellphones, iPods, and other devices to tell time. A company that specializes in selling inexpensive watches to this age group may wish to consider ____ in order to develop new products other than watches.
(A) unrelated diversification
(B) backward integration
(C) forward integration
(D) horizontal acquisitions

Answer 1

Answer:

(A) unrelated diversification

Explanation:

• The unrelated diversification s a form of diversification that that to the forms of business when they adds up unrelated new products and new lines and penetrates the newer markets.  

• An example of cake makers entering a furniture market. Thus relates to different and non-related spheres of functioning.