Large diversified businesses often face a
,which results from analysts not knowing how to
Value a vast array of large businesses with complex financial reports.
A)threat of regulation by the Securities and Exchange Commission
B)high CEO turnover
C)threat of takeover
D)conglomerate discount

Question

Quizplus · Accepted Answer

The term "conglomerate discount" refers to the phenomenon where the stock price of a conglomerate (a large company with diverse business units) is valued less than the sum of its individual parts. This is due to investors and analysts not fully understanding or being able to value the company's different businesses and financial reports, leading to a decrease in the company's overall valuation.

Large Diversified Businesses Often Face a