Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?
A) Enabling a company to achieve rapid or continuous growth
B) Reducing risk by way of spreading the company's investments over a set of truly diverse industries
C) Stabilizing earnings,that is,market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
D) Providing benefits to managers such as high compensation and reduction in employment risk
E) Restructuring an underperforming business
Correct Answer:
Verified
Q46: The value of determining the relative competitive
Q47: The two biggest drawbacks or disadvantages of
Q48: The success of unrelated diversification is contingent
Q49: A competitive strength score above five indicates
Q50: When industry attractiveness ratings are calculated for
Q52: A comprehensive evaluation of the group of
Q53: A diversified company has a parenting advantage
Q54: A major factor that company executives need
Q55: Which of the following is not generally
Q56: When calculating industry attractiveness scores,to produce a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents