When a diversified firm combines unrelated businesses:
A)Research suggests there is an absence of shareholder's benefits
B)Research indicates there is a shareholder's benefit
C)Research is inconclusive about benefits to shareholders
D)Empirical research is required in advance

Question

Quizplus · Accepted Answer

Research suggests that when a diversified firm combines unrelated businesses, there is often an absence of shareholder's benefits due to the complexity and inefficiencies that can arise from managing unrelated operations.

When a Diversified Firm Combines Unrelated Businesses