The Key to the Creation of Value Through Diversification Is

question 47

Multiple Choice

The key to the creation of value through diversification is:

• A)The relative financial powers of different diversified companies
• B)The ability of the diversified company to acquire knowledge faster than market diffusion effects
• C)The ability of the diversified company to benefit from economies of scope across its businesses
• D)The ability of the diversified company to share resources and transfer capabilities more efficiently than the external market

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Definitions:

Equivalent

Equal in value, measure, force, effect, significance, etc.

Missing Value

A term used in statistics and data analysis to denote a data point that is not recorded or is unknown.

Calculate

To determine the amount or number of something by mathematical means.

Simple Interest Rate

An interest rate calculation method where the interest is computed solely on the principal amount, without compounding.