Solved

An Acquisition Completed Simply to Diversify a Firm Will

Question 5

Multiple Choice

An acquisition completed simply to diversify a firm will:


A) create excessive synergy in almost all situations.
B) lower systematic risk and increase the value of the firm.
C) benefit the firm by eliminating unsystematic risk.
D) benefit the shareholders by providing otherwise unobtainable diversification.
E) generally not add any value to the firm.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions