In Making a Decision to Diversify, Managers Should Use Value-Creating

question 85

Multiple Choice

In making a decision to diversify, managers should use value-creating reasons or face the risk that their firms will be acquired and they could lose their jobs.Which of the following is a value-creating reason to diversify?

• A) Economies of scope
• B) Desire for increased compensation
• C) Reduced managerial risk
• D) Low performance

---

Definitions:

British Freedom

Refers to the various aspects of civil liberties and democratic principles that have developed and evolved within Britain over centuries.

Protestantism

A form of Christian faith and practice that originated with the Reformation, a movement against what its followers considered to be errors in the Roman Catholic Church.

Secular View

An approach or perspective that focuses on the present life and physical world, often rejecting or excluding religious considerations and beliefs.

Republican Virtue

Republican virtue is a political concept emphasizing the importance of civic virtue and morality in citizens to sustain a republic, historically significant in American and French republican thought.