A firm owns several businesses, including a personal loan office and a furniture store. Another standalone personal loan office is suffering financially because of the allocation of its assets. The furniture business decides to buy the standalone personal loan business, restructure its assets, and then sell it as operations resume more successfully.
This is an example of: a. unrelated diversification. b. value-neutral diversification. c. value-creating related diversification. d. vertical integration.
A secondhand computer retailer is often mistaken for an IT help business. As a result, tech savvy employees of the retailer are often fixing the customers' computer issues when they come into the store. The firm that owns the secondhand computer retailer has decided to diversify and open computer repair shops selling IT services. Diversifying on the basis of employee knowledge is considered what type of resource?
a. Tangible b. Intangible c. Non-Substitutable d. Rare