Different incentives to diversify sometimes exist, and the quality of a firm's resources may permit only diversification that is value neutral rather than value creating.

Question

Quizplus · Accepted Answer

Diversification can be driven by various incentives, such as risk reduction or managerial motives, and the quality of a firm's resources may not always support diversification that enhances value, leading to value-neutral outcomes instead.

Different Incentives to Diversify Sometimes Exist, and the Quality of a Firm's