Question

Question 6 1 pts Since unrelated diversification has to rely on financial economies of scope for its justification, we can conclude that unrelated diversification is rarely an important strategy True False Question 7 1 pts Strategic alliances are preferred to solo ventures in facilitating market entry when the value of market entry is Low Moderate Well-understood Uncertain

Answer 1

1. The statement is true as unrelated diversification results in a new field other than current business field and aa such may have huge financial implications.

2. Strategic alliance are preferred to solo entry in case of market value is UNCERTAIN .As in this way the risk associteda will be mitigated.