Question

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

Answer 1

Answer:

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.