When examining the relationship between diversification and performance, it appears that diversification benefits shareholders up to a point, but tends to dissipate value at ________.
A) high levels of consolidation
B) high levels of diversification
C) low levels of consolidation
D) low levels of diversification

Question

Quizplus · Accepted Answer

The statement indicates that diversification benefits shareholders up to a point but tends to dissipate value at high levels of diversification. Therefore, the best choice is B, which refers to high levels of diversification.

When Examining the Relationship Between Diversification and Performance, It Appears