A firm is owned by members of a single family. Most of the wealth of this family is derived from the operations of this firm, and the family does not want to “go public” with the firm by selling its...

A firm is owned by members of a single family. Most of the wealth of this family is derived from the operations of this firm, and the family does not want to “go public” with the firm by selling its equity position to outside investors. Will this firm choose to pursue a highly related diversification strategy or a somewhat less related diversification strategy?