An Acquisition Completed Simply to Diversify a Firm Will

question 5

Multiple Choice

An acquisition completed simply to diversify a firm will:

• A) create excessive synergy in almost all situations.
• B) lower systematic risk and increase the value of the firm.
• C) benefit the firm by eliminating unsystematic risk.
• D) benefit the shareholders by providing otherwise unobtainable diversification.
• E) generally not add any value to the firm.

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Definitions:

Initial Disaster

The first major catastrophic event that triggers a series of responses or crises, often necessitating emergency intervention.

Crisis Intervention Services

Organizations or programs that offer immediate, short-term assistance to individuals experiencing an acute psychological crisis aiming to minimize stress and improve coping mechanisms.

Educational Seminars

Workshops or lectures aimed at providing information and insights on specific topics to enhance knowledge and skills.

Individual Counseling

A therapeutic process where a counselor works one-on-one with a client to address personal issues, promote growth, and foster well-being.