A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons EXCEPT
A) corporate headquarters can change managerial incentives.
B) corporate headquarters has more complete information about the subsidiary businesses than the external capital market.
C) the firm can acquire other firms with innovative products instead of allocating capital to research and development.
D) the firm can make strategic changes in its subsidiary businesses.
Correct Answer:
Verified
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