The curvilinear relationship of corporate performance and diversification indicates that: dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies. the highest performing business strategy is related constrained diversification. the less related the businesses acquired, the higher performing the organization. none of the strategies consistently outperforms the others.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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  1. The curvilinear relationship of corporate performance and diversification indicates that:

     
    1. dominant-business corporate strategies tend to be higher performing than related constrained or unrelated business strategies.

       
    2. the highest performing business strategy is related constrained diversification.

       
    3. the less related the businesses acquired, the higher performing the organization.

       
    4. none of the strategies consistently outperforms the others.

       
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