Bringing different businesses under a single ownership in theory:
A)Creates value for shareholders
B)Does not create value for shareholders, by itself
C)Has negative impact on the creation of shareholders' value, by itself
D)Creates value for shareholders if the cash flows of the businesses are not correlated

Question

Quizplus · Accepted Answer

Bringing different businesses under a single ownership does not inherently create value for shareholders by itself. Value creation depends on synergies, efficiencies, and strategic fit, not just the act of combining businesses.

Bringing Different Businesses Under a Single Ownership in Theory