Among the Value-Neutral Incentives to Diversify, Some Come from the Firm's

question 119

Multiple Choice

Among the value-neutral incentives to diversify, some come from the firm's external environment while others are internal to the firm. External incentives to diversify include:

• A) the fact that other firms in an industry are diversifying.
• B) pressure from stockholders who are demanding that the firm diversify.
• C) changes in antitrust regulations and tax laws.
• D) a firm's low performance.

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Definitions:

Racial Prejudice

Racial Prejudice involves preconceived negative judgments or opinions about individuals based on their racial or ethnic background.

Discrimination Coefficients

Measures that quantify the extent to which different groups are treated differently based on certain attributes.

Labor Demand

Refers to the quantity of labor that employers are willing and able to hire at a given wage rate in a given time period.

Statistical Discrimination

Statistical discrimination happens when assumptions are made about individuals based on aggregate statistics or stereotypes rather than personal attributes.