Question

Virgo Inc.earns less than 70 percent of its revenue from manufacturing computers.It recently started manufacturing tablets.The company made use of existing technology and materials and decided to distribute the tablets through the same distributors used for its computers.In this scenario, Virgo Inc.chose:____________.. A) related-constrained diversification B) related-linked diversification C) unrelated-constrained diversification D) unrelated-linked diversification

Answer 1

A) related-constrained diversification

Step-by-step explanation:

Based on the scenario being described within the question it can be said that Virgo Inc.chose related-constrained diversification. This term refers to when a company has various sub-business's that are related or connected and in which the dominant business, which in this scenario is the computer manufacturing business, is earning less than 70% percent of the overall company's revenue.