1. A study reported that firms are far more likely to diversify into industries that have ties to the firms' core activities such as their existing workforce, rather than into industries without such...

Extracted text: 1. A study reported that firms are far more likely to diversify into industries that have ties to the firms' core activities such as their existing workforce, rather than into industries without such ties. In fact, the researchers report that "firms are over 100 times more likely to diversify into industries to which the firms' internal human assets are strongly complementary, rather than into industries for which such skill-relatedness linkages are weak." Explain the above statement using a relevant theory and provide FIVE (5) main arguments in your answers.