Diversification may dissipate value if it is wrongly based on
A) realizing economies of scope.
B) pooling risks.
C) transferring competencies.
D) acquisitions and restructuring.
E) leveraging existing competencies.

Question

Quizplus · Accepted Answer

Diversification based on pooling risks may dissipate value as it doesn't necessarily create synergies or efficiencies, unlike the other options which focus on leveraging or enhancing existing capabilities.

Diversification May Dissipate Value If It Is Wrongly Based on