Of the value-neutral incentives to diversify, all of the following are internal firm incentives EXCEPT:
A) overall firm risk reduction.
B) uncertain future cash flows.
C) stricter interpretation of antitrust laws.
D) low performance.

Question

Quizplus · Accepted Answer

Stricter interpretation of antitrust laws is an external incentive imposed by regulatory bodies, rather than an internal incentive driven by the firm itself. The other options - overall firm risk reduction, uncertain future cash flows, and low performance - are all internal incentives for a firm to diversify its operations.

Of the Value-Neutral Incentives to Diversify, All of the Following