
GE (discussed in the Chapter 6 Opening Case)is an example of a firm that has used internal capital market allocation as a means of creating value even though it competes using a related linked rather than an unrelated diversification strategy.
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Q17: Firms using the related constrained strategy share
Q25: The "conglomerate discount" occurs in large, highly
Q35: Market power exists when a firm is
Q36: One advantage of an unrelated diversification strategy
Q41: Research evidence shows that increased firm size
Q41: Performance continues to increase as diversification increases
Q42: Synergy exists when the value created by
Q45: In spite of the challenges associated with
Q46: Different incentives to diversify sometimes exist, and
Q49: Without strict governance mechanisms, the majority of
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