Multiple Choice
What rationales for unrelated diversification are not likely to increase shareholder value?
A) In order to reduce risk by spreading the company's investments over a set of truly diverse industries.
B) To enable a company to achieve rapid or continuous growth.
C) To chance that market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses.
D) To provide benefits to managers such as high compensation and reduction in employment risk.
E) All of these.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: The chief purpose of calculating quantitative industry
Q51: Discuss the pros and cons of a
Q58: What is the relevance of quantitatively measuring
Q87: In which of the following instances is
Q89: Internal development of a new business subsidiary
Q93: A joint venture is an attractive way
Q94: Under what circumstances might an already diversified
Q95: The better-off test for evaluating whether a
Q134: Which of the following is an important
Q153: A joint venture is an attractive way