When evaluating strategc fit benefits that related diversifcation candelier, one

Question

When evaluating strategc fit benefits that related diversifcation candelier, one must keep in consideration a number of factors. Which one is NOT relevant?

A. The Capture of cross-business strategic fits benefits is possible only through related diversifcation. B. Cross-business strategic fit benefits are not automatically realized,. the benefits materialize only after management has successfully pursued internal actions to capture them. C. Related diversification is the process of holding the stock of many businesses in a portfolio. D. Shareholder value stemming from a diversified business cannot be replicated by simply owning a diversified portfolio of stocks.

Explanation / Answer

Answer for this question is option “c” Related diversification is the process of holding the stock of many businesses in a portfolio.

shareholder value is made when the expanded organization's gainfulness surpasses desires. Under ordinary economic situations, diversification is a powerful method to lessen hazard. On the off chance that you hold a differentiated portfolio with a wide range of ventures, it's substantially less likely that the greater part of your speculations will perform severely in the meantime. The benefits you acquire on the ventures that perform well balanced the misfortunes on those that perform inadequately.

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