Which of the Following Is the Best Definition of Diversification

question 75

Multiple Choice

Which of the following is the best definition of diversification?

• A) The sale of stock in a wholly owned subsidiary via an IPO.
• B) A targeted share repurchase method.
• C) The sale of assets, operations, divisions, and/or segments of a business to a third party.
• D) Investment in more than one asset; returns do not move proportionally in the same direction at the same time, thus reducing risk.
• E) Rules and practices relating to how corporations are governed by management, directors, and shareholders.

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Definitions:

Interpretive Skills

The ability to understand and translate information, texts, or data into meaningful insights or practical applications.

Harmoniously

In a manner that is congruent and compatible, showing agreement or concord in action, attitude, or design.

Productive Workplace

An environment that maximizes efficiency and efficacy, encouraging employees to achieve their professional goals.

Shared Meaning

A common understanding or interpretation of a concept, term, or symbol among a group of people.