What rationales for unrelated diversification are not likely to increase shareholder value?
A) In order to reduce risk by 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 reduction in employment risk.
E) All of these.
Correct Answer:
Verified
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