Unrelated diversification makes sense only when doing so 

a. results in risk reduction by spreading a company's investments over a set of diverse industries. 

b. supports managerial motives including the prospects for higher compensation. 

c. meets expectations for rapid or continuous growth. stabilizes earnings, i.e., market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses. 

d. delivers enhanced shareholder value if an undervalued company can be purchased at a bargain price