Diversification Involves Creating a New Company Whose Stock Is Owned

question 45

True/False

Diversification involves creating a new company whose stock is owned by investors.

---

Definitions:

Supply Chains

A network of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of raw materials from the supplier to the manufacturer, and ultimately to the end user.

Competent Parties

Individuals or entities that are legally able to enter into a binding contract, having the necessary legal authority and mental capacity.

Legal Subject Matter

The specific theme, topic, or focus of a legal document or discussion, often defining the scope of legal rights and duties.

Offer and Acceptance

The essential components of a valid contract, where an offer is made and then accepted by the other party.