Analysis of Interobject Similarity Can Be Conducted by Cluster Analysis

question 13

True/False

Analysis of interobject similarity can be conducted by cluster analysis and multiple discriminant analysis.

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Definitions:

Acquiring Firm

A company that purchases a majority interest in another company to take control of it.

Parent

A company that holds a controlling interest in one or more subsidiaries, or an individual who has a child.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority share ownership.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.