A CEO explains the key logic behind the corporate strategy as "a controlled risk management approach whereby we carefully balance our activities to be active in industries with different or opposing business cycles. This way, our revenues and profits do not fluctuate as much as if these business units had acted as independent companies." This is an example of:

A wrong reason for diversification as creates complexity and risks of interdependent actions

A correct reason for diversification through sharing resources and capabilities

A wrong reason for diversification as shareholders could have diversified investments themselves

A correct reason for diversification through product bundling