An Unrelated Diversification Strategy Can Create Value Through Two Types

question 61

True/False

An unrelated diversification strategy can create value through two types of financial economies: (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their assets, and selling them.

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Definitions:

Affirmation

A statement of emotional support or encouragement, often used as a technique in positive thinking and self-improvement practices.

Normalizing

The process of making something standard, typical, or expected within a certain context or framework.

Directing

The process of guiding, commanding, or controlling a group or an individual to achieve desired goals or tasks.

Challenging

Presenting a task or problem that is difficult to solve or requiring effort to overcome.