Question

A firm that earns less than 70 percent of revenue from its dominant business and has direct connections between its businesses is engaging in ____ diversification. Group of answer choices

Answer 1

related constrained

Step-by-step explanation:

Related constrained diversification occurs when a company shares its resources and activities between the businesses it owns.

This type of organisation is characterised by less than 70 percent of it revenue coming from its dominant business.

Also all businesses share the same technology, distribution channels, and products.

Basically a business expands its operations into product lines that it already offers. So the new business it operates through produces same product.