A Firm Practicing Unrelated Diversification Can Make Better Capital Allocations

question 96

Multiple Choice

A firm practicing unrelated diversification can make better capital allocations to its subsidiary businesses than the external capital market can for all the following reasons EXCEPT

• A) corporate headquarters can change managerial incentives.
• B) corporate headquarters has more complete information about the subsidiary businesses than the external capital market.
• C) the firm can acquire other firms with innovative products instead of allocating capital to research and development.
• D) the firm can make strategic changes in its subsidiary businesses.

Understand the basics of software application use for various tasks, including photo editing and website creation.

Grasp the concept of software development, including phases and key activities.

Understand the basic functions and features of Outlook.

Identify and use Outlook's options for customizing email experience.

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Definitions:

Personal Helplessness

A state in which an individual feels they lack control over situations and outcomes in their life, often leading to decreased motivation and depression.

Internal Locus

A psychological term referring to individuals who believe that they have control over the outcomes of their actions and the events in their lives.

Reciprocal Determinism

A concept in psychology where a person's behavior both influences and is influenced by personal factors and the social environment.

Reciprocal Determinism

The theory that a person's behavior both influences and is influenced by personal factors and the social environment.