Diversification strategies always lead to increased shareholder value.

Question

Quizplus · Accepted Answer

Diversification strategies can either increase or decrease shareholder value depending on various factors such as market conditions, industry dynamics, financial resources, and managerial competency. There is no guarantee that diversification will always yield positive results for shareholders. Therefore, companies should carefully evaluate the costs and benefits of diversification before pursuing it as a strategic option.

Diversification Strategies Always Lead to Increased Shareholder Value