BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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. conglomerate diversification.
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horizontal integration.
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vertical integration.
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concentric integration
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Detailed explanation-1: -Answer: Concentric Diversification: It is similar to related diversification, wherein the new business entered into by the firm is associated with the existing business by way of process, technology or market. The newly entered product is a spin-off from the already existing facilities.
Detailed explanation-2: -If a company is expanding into industries that are unrelated to its current business, then it’s engaging in conglomerate diversification.
Detailed explanation-3: -Concentric diversification involves adding similar products or services to the existing business. For example, when a computer company that primarily produces desktop computers starts manufacturing laptops, it is pursuing a concentric diversification strategy.
Detailed explanation-4: -Horizontal diversification is when you acquire or develop new products or services that are complementary to your core business and appeal to your current customers. For example, an ice-cream business adds a new type of confectionary into its product line.
Detailed explanation-5: -Answer: c. An entrepreneur who is the owner of more than one business is called: Portfolio Entrepreneur.