In Making a Decision to Diversify,managers Should Use Value-Creating Reasons

question 40

Multiple Choice

In making a decision to diversify,managers should use value-creating reasons or face the risk that their firms will be acquired and they could lose their jobs. Which of the following is a value-creating reason to diversify?

• A)economies of scope
• B)desire for increased compensation
• C)reduced managerial risk
• D)low performance

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Definitions:

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A structured development program designed to train individuals for managerial roles within an organization.

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