In order for a diversification strategy to enhance firm performance,it must do any of the following EXCEPT:
A) Provide economies of scale and reduce costs.
B) Exploit economies of scope and increase value.
C) Create diversification discounts.
D) Reduce costs and increase value.

Question

Quizplus · Accepted Answer

A diversification strategy enhances firm performance if it either provides economies of scale (reduces costs), exploits economies of scope (increases value), or does both.

In Order for a Diversification Strategy to Enhance Firm Performance,it