All of the Following Are Internal Firm Incentives to Diversify

question 63

Multiple Choice

All of the following are internal firm incentives to diversify EXCEPT:

• A) overall firm risk reduction.
• B) uncertain future cash flows.
• C) an abundance of firm resources.
• D) low performance.

---

Definitions:

Pooled Talents

The combining of skills, knowledge, and abilities from multiple individuals or teams to achieve a common goal.

Chapter 11 Bankruptcy

A type of bankruptcy that focuses on restructuring a debtor's business operations, liabilities, and assets, known by the designation of chapter 11 in the U.S. bankruptcy code.

Second Chance

refers to giving someone or something another opportunity to succeed after a failure or poor performance.

Sole Proprietorship

A business structure where a single individual owns and operates the business.