Which of the following reasons for diversification is most likely to increase the firm's value?
A)increasing managerial compensation
B)reducing costs through business restructuring
C)taking advantage of changes in tax laws
D)conforming to antitrust regulation

Question

Quizplus · Accepted Answer

Reducing costs through business restructuring can increase the firm's value by improving efficiency and profitability. Diversifying to take advantage of changes in tax laws, conforming to antitrust regulations, or increasing managerial compensation may not necessarily lead to an increase in the firm's value.

Which of the Following Reasons for Diversification Is Most Likely