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When a Firm Simultaneously Practices Operational Relatedness and Corporate Relatedness

Question 63

Multiple Choice

When a firm simultaneously practices operational relatedness and corporate relatedness,


A) it is difficult for investors to observe the value created by the firm.
B) the firm is likely to be overvalued by investors.
C) the firm will suffer from diseconomies of scope which outweigh cost savings generated.
D) the firm is seeking to create value through financial economies.

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