Which Type of Diversification Is Most Likely to Create Value

question 49

Multiple Choice

Which type of diversification is most likely to create value through financial economies?

• A)related constrained
• B)operational and corporate relatedness
• C)unrelated
• D)related linked

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Definitions:

Lump Payment

A single large payment made for a particular item or service, rather than several smaller installments.

Rate Of Return

The profit or deficit experienced on an investment throughout a designated period, shown as a percentage of the original investment amount.

Building Lot

A parcel of land designated for constructing a building or set of buildings.

Equivalent Payment

A payment amount that, when adjusted for interest and time, is equal in value to a different payment amount over a different time period.