Which of the following statements is an advantage of related diversification strategy?
a.
Related diversification strategy allows a firm to maintain several businesses that are not connected in any way.
b.
The sharing of resources is a key component of developing economies of scope and often increases a firm's competitive advantage.
c.
Related diversification strategies often achieve financial economies through the restructuring of business units.
d.
It can allow a sick or dying company to use capital generated in a profitable division to prop it up for a short period of time.
Answer: b