Which of the Following Explains Why Diversification of a Business

question 94

Multiple Choice

Which of the following explains why diversification of a business is in the managers' interest?

• A) It protects the shareholders from risk.
• B) It is an example of expense preference behaviour.
• C) It maximizes the firm's profits.
• D) It diversifies a risk that only managers face.

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Definitions:

Cluster Analysis

A statistical method used to group objects or variables into clusters that contain similar characteristics, often used in research to identify patterns or categorize data.

Instruments

Tools or devices used to measure variables or gather data in research.

Cluster Analysis

A statistical method used to group objects or cases based on their similarities, often used in data mining and pattern recognition.

Statistical Methods

Techniques and procedures used for collecting, analyzing, interpreting, and presenting numerical data.