Which of the Following Rationales for Pursuing Unrelated Diversification Is

Multiple Choice

Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?

A) Enabling a company to achieve rapid or continuous growth
B) Reducing risk by way of spreading the company's investments over a set of truly diverse industries
C) Stabilizing earnings,that is,market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
D) Providing benefits to managers such as high compensation and reduction in employment risk
E) Restructuring an underperforming business