Solved

What Rationales for Unrelated Diversification Are Not Likely to Increase

Question 27

Multiple Choice

What rationales for unrelated diversification are not likely to increase shareholder value?


A) 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 the above

Correct Answer:

verifed

Verified

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

Related Questions