Which of the Following Reasons for Diversification Is Most Likely

question 65

Multiple Choice

Which of the following reasons for diversification is most likely to increase the firm's value?

• A)increasing managerial compensation
• B)reducing costs through business restructuring
• C)taking advantage of changes in tax laws
• D)conforming to antitrust regulation

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Definitions:

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Competitive Exclusion

Process whereby two species compete for a limiting resource, and one drives the other to local extinction.

Same Niche

The scenario where two or more species occupy the same environmental niche, competing for identical resources.

Larger Species

Species characterized by larger body sizes in comparison to related species or within a defined context of study.