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A firm follows a(n) Blank______ diversification strategy when it derives less than 70% of its revenues from a single business activity and obtains revenues from other lines of business that are linked to the primary business activity.Multiple choice question.singlerelateddominantunrelated

Question

A firm follows a(n) Blank______ diversification strategy when it derives less than 70% of its revenues from a single business activity and obtains revenues from other lines of business that are linked to the primary business activity.Multiple choice question.singlerelateddominantunrelated

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Solution

The correct answer is "related". This is because the firm is diversifying its business activities, but these activities are still linked to the primary business activity. This is known as a related diversification strategy.

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