Asked by Charol Pelagio on Apr 28, 2024

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A company can shield itself from the adverse effects of business cycles, unexpected competition, and other economic fluctuations while operating several unique businesses in different markets by using _____.

A) a retrenchment strategy
B) unrelated diversification
C) a differentiation strategy
D) related diversification

Unrelated Diversification

A business strategy where a company expands into markets or products that are not related to its current operations.

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction.

Economic Fluctuations

Variations in the level of economic activity over a period of time, often characterized by periods of growth (expansions) and contraction (recessions).

  • Acquire knowledge about the essential notions and categories of corporate strategies, covering diversification, differentiation, and adaptation methodologies.
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Verified Answer

GG
George GhazalaApr 29, 2024
Final Answer :
B
Explanation :
Unrelated diversification involves a company operating multiple businesses that are not related to each other, which can help spread risk and reduce the impact of adverse conditions in any one market or industry.