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Which of the Following Is a Potential Cost of Diversification

Question 24

Multiple Choice

Which of the following is a potential cost of diversification?


A) Firms become bureaucratic and more expensive to manage as they grow.
B) The cost of production increases,thereby reducing profits earned by a firm.
C) The supply of labor reduces,thereby reducing the level of production.
D) Shareholders find it expensive and risky to hold a diversified portfolio.

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