Which of the following reasons for diversification is most likely to increase the firm's value?
A) Increasing managerial compensation
B) Reducing costs through business restructuring
C) Taking advantage of changes in tax laws
D) Conforming to antitrust regulation

Question

Quizplus · Accepted Answer

Reducing costs through business restructuring is most likely to increase the firm's value as it can enhance efficiency and profitability. Diversification aimed at increasing managerial compensation, taking advantage of changes in tax laws, or conforming to antitrust regulation may not necessarily lead to value creation.

Which of the Following Reasons for Diversification Is Most Likely