Of the Value-Neutral Incentives to Diversify, All of the Following

question 85

Multiple Choice

Of the value-neutral incentives to diversify, all of the following are internal firm incentives EXCEPT:

• A) overall firm risk reduction.
• B) uncertain future cash flows.
• C) stricter interpretation of antitrust laws.
• D) low performance.

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Definitions:

Accounting Equation

The foundational equation in accounting stating that Assets = Liabilities + Equity, ensuring balance in a company's financial statements.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Account Type

A classification used in accounting to differentiate various types of financial records, such as assets, liabilities, equity, revenues, and expenses.

Profitable

A financial condition where income exceeds expenses resulting in a net gain.