External incentives to diversify include:
A)the fact that other firms in an industry are diversifying
B)pressure from stockholders who are demanding that the firm diversify
C)the government's antitrust and tax laws
D)a firm's low performance

Question

Quizplus · Accepted Answer

Government's antitrust and tax laws can create external incentives for firms to diversify to avoid regulatory issues or to take advantage of tax benefits.

External Incentives to Diversify Include