Among the Value-Neutral Incentives to Diversify, Some Come from the Firm's

question 119

Multiple Choice

Among the value-neutral incentives to diversify, some come from the firm's external environment while others are internal to the firm. External incentives to diversify include:

• A) the fact that other firms in an industry are diversifying.
• B) pressure from stockholders who are demanding that the firm diversify.
• C) changes in antitrust regulations and tax laws.
• D) a firm's low performance.

---

Definitions:

Arithmetic Average

The central value of a set of numbers, calculated by dividing the sum of all the numbers by the count of those numbers.

Arithmetic Average

The sum of a collection of numbers divided by the count of numbers in the collection, commonly known as the mean.

Extreme Cases

Situations or examples that are highly unusual or atypical, often used to test the limits of theories or understanding.

Central Tendency

A statistical measure that identifies the center of a data distribution, commonly represented by the mean, median, or mode.