Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?
A) To reduce risk by way of spreading the company's investments over a set of truly diverse industries
B) To enable a company to achieve rapid or continuous growth
C) To chance that market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
D) To provide benefits to managers such as high compensation and reduced unemployment risk
E) To restructure an underperforming business
Correct Answer:
Verified
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