A Major Advantage of Diversification Is That Overall Monitoring Costs

question 135

True/False

A major advantage of diversification is that overall monitoring costs are reduced,since each separate business comes under the control of corporate headquarters.

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Definitions:

Corporate Charters

Official documents issued by a government, granting rights and privileges to a corporation to conduct business.

Market Economy

A market economy is an economic system where decisions regarding investment, production, and distribution are based on the interplay of supply and demand, and prices of goods and services are determined in a free price system.

Capital

In economics, refers to wealth in the form of money or assets owned by an individual or organization. In the context of cities, it refers to the seat of government for a region or country.