Diversification into Unrelated Businesses Can Add Value for Shareholders If

question 39

Multiple Choice

Diversification into unrelated businesses can add value for shareholders if:

• A) the brand is licensed to other users.
• B) retaining control of the economies of scope reduces transaction costs.
• C) the unrelated businesses have a high risk component.
• D) managers' pay is linked to the size of the firm and not profits.

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Definitions:

Bone Loss

The decrease in bone density and mass, often associated with aging or certain medical conditions.

Phased Retirement

A work arrangement that allows employees to gradually reduce their working hours as they transition into retirement, often while maintaining some level of benefits.

Bridge Employment

refers to the transitional work phase between full career employment and complete retirement, often involving part-time or flexible job roles.

Testosterone Levels

The concentration of the hormone testosterone in the bloodstream, important for both males and females in various physiological functions.