The primary source of value creation from diversification is likely to be
A) the linkages or synergies between the businesses concerned.
B) risk reduction through balancing of counter-cyclical businesses.
C) getting a price reduction when purchasing common resource inputs.
D) balancing of cash generation, reducing the need to obtain investment finance externally.
Correct Answer:
Verified
Q47: Gaining the advantage from economies of scope
Q48: A "technical economy" is
A)a saving which is
Q49: One common argument against diversification strategies is
A)managers
Q50: The most often-cited benefits of diversification are
A)growth,
Q51: Adam Smith, the famous economist, called the
Q53: Over the past 30 years, the tendency
Q54: An internal capital market occurs when
A)a diversified
Q55: Outsourcing is a form of
A)increased vertical integration.
B)decreased
Q56: The move over the past 25 years
Q57: A firm becomes more vertically integrated when
A)it
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