Rajesh Textiles Ltd., a leading fabric manufacturer, establishes MedCare Hospitals to enter the healthcare services industry, which has no…
CA Intermediate · Financial Management and Strategic Management · RTP · May 2026
Rajesh Textiles Ltd., a leading fabric manufacturer, establishes MedCare Hospitals to enter the healthcare services industry, which has no technological or market linkage with its existing textile business. The management expects growth through sectoral expansion and risk spreading. This move represents which type of diversification?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Conglomerate diversification
Topics: Part-A: Financial Management, Part B: Strategic Management
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