The key to the creation of value through diversification is:
A) The relative financial powers of different diversified companies
B) The ability of the diversified company to acquire knowledge faster than market diffusion effects
C) The ability of the diversified company to benefit from economies of scope across its businesses
D) The ability of the diversified company to share resources and transfer capabilities more efficiently than the external market
Correct Answer:
Verified
Q41: Large diversified companies are very good at:
A)Reacting
Q42: There was a surge in "leveraged buyouts"
Q43: CAPM stands for:
A)Compound Assessment of Portfolios and
Q44: Leveraged buyouts happened because:
A)The 1980s saw the
Q45: "What business are we in?" is a
Q47: Over the past 30 years:
A)Firms have had
Q48: Which of the two, the individual investor
Q49: CAPM theory indicates that:
A)Combining several firms under
Q50: Management thinking in the 1990's began to
Q51: Diversification should:
A)Be avoided
B)Be a last resort
C)Only be
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