An Unrelated Diversification Strategy Can Create Value Through Two Types

question 61

True/False

An unrelated diversification strategy can create value through two types of financial economies: (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their assets, and selling them.

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Definitions:

Germinal

Relating to the earliest phase of embryonic development, in the first two weeks post-conception when the zygote begins to divide and grow.

Zygote

A fertilized egg cell that results from the union of a female gamete (egg, or ovum) with a male gamete (sperm).

Embryo

The early developmental stage of an organism, following fertilization and preceding fetal development.

Amnion

A thin, protective membrane that forms a sac around the embryo or fetus during pregnancy, containing the amniotic fluid.