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Which of the Following Benefits of Diversification Explains the Idea

Question 15

Multiple Choice

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?


A) Use of internal capital markets
B) Economies of scale and scope
C) Economizing on transaction costs
D) Diversifying shareholder portfolios
E) Identifying undervalued firms

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