The relationship between the type of diversification and overall firm performance

Multiple Choice

• takes on the shape of an inverted U so related diversification has the best performance.
• takes on the shape of a U where modest diversification has the worst performance.
• is positive, meaning that more diversification always leads to higher firm performance.
• is negative, meaning that more diversification always leads to lower firm performance.
• there is no relationship between the type of diversification and overall firm performance