Certain regulatory changes (such as antitrust regulation and tax laws) create incentives or disincentives for diversification that:
A) create value.
B) reduce value.
C) are value-neutral.
D) are managerial motives to diversify.

Question

Quizplus · Accepted Answer

Regulatory changes like antitrust regulation and tax laws are generally considered value-neutral as they do not inherently create or reduce value but rather influence the strategic decisions of firms regarding diversification.

Certain Regulatory Changes (Such as Antitrust Regulation and Tax Laws)