The "Conglomerate Discount" Occurs in Large, Highly Diversified Businesses and Results

question 41

True/False

The "conglomerate discount" occurs in large, highly diversified businesses and results from analysts not knowing how to value the vast array of large businesses with complex financial reports.

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Definitions:

Conclusions

Statements or judgments that follow logically from the analysis of information, summarizing findings and providing closure on a subject or issue.

Slippery Slope

A logical fallacy or argument that suggests taking a minor action will lead to major and oftentimes negative consequences without providing evidence for such a drastic outcome.

Dichotomy

A division or contrast between two things that are represented as being entirely different.

Analogy

A comparison between two things, typically for the purpose of explanation or clarification, highlighting similarities in some respects.