Empirical evidence on the relationship between diversification and profitability shows that diversification has a negative impact on profitability.

Question

Quizplus · Accepted Answer

Empirical evidence suggests that diversification can both positively and negatively impact profitability depending on various factors such as industry structure and managerial expertise. Therefore, it cannot be generalized that diversification has a negative impact on profitability.

Empirical Evidence on the Relationship Between Diversification and Profitability Shows