The more links there are among businesses the more

4. The more links there are among businesses, the
more ________ the relatedness of diversification
is.
A. effective
B. linked
C. constrained D. integrated
ANS: C PTS:1 DIF:Hard REF: Levels of
diversification

5. Usually a company is employing a single-
business diversification strategy when
revenues generated by the dominant business
are greater than:
PTS: 1 DIF:Moderate REF: Low
levels of diversification

6. For a firm’s diversification strategy to be
considered related constrained:
PTS:1 DIF:Hard REF: Moderate
and high levels
of diversification

7. In related linked diversification, related linked
firms share ________ actual resources and
activities and ________ transfers of knowledge
and competencies between units.
PTS:1 DIF:Hard REF: Moderate
and high levels
of diversification
8. A related constrained diversified firm would be
expected to ________ a number of resources and
activities between its businesses.
A. eliminate
B. share
C. not be able to share

D. not want to share
ANS: B PTS: 1 DIF:
Easy of diversification
RE
F:
Moderate
and high
levels
9
.
Which of the following is not
reason for firms to diversify?
a
PTS: 1 DIF:Hard RE Reasons
diversification F: for
10. Which of the following is not a reason for
firms to engage in value-neutral diversification?

C. Avoiding anti-trust regulation
D. Diversifying managerial employment risks
ANS: A PTS:1 DIF:Moderate REF:
Reasons for
diversification