Problem: Advocates of diversification often contend that a company should diversify or integrate into "adjacent related profit pools" in order to "capture the margin" earned by a supplier, buyer, or a complementary business. Which of the following conditions must be met first before proceeding with a strategic diversification investment? Group of answer choices the businesses entered in are closely related to the core of firms activities. That is, it is a related diversification move there are explicit synergies (economies of scope) that can be created/exploited between the existing business units of the corporation and the newly diversified businesses the internal transactions between the business units are less costly or more effective than transactions between independent firms the new business opportunity can provide a sustainable competitive position the business unit can be managed at arms-length with little strategic or operational control from the corporate parent