Under Which of the Following Circumstances Does Diversification Destroy Value

question 15

Multiple Choice

Under which of the following circumstances does diversification destroy value?

• A)When high-powered incentives for managers are provided
• B)When resource commonality between the lines of business exists
• C)When the new line of business expands the company's capabilities
• D)When the new line of business fails to exploit the company's resources

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Definitions:

Net Neutrality

The principle that internet service providers should enable access to all content and applications regardless of the source, without favoring or blocking particular products or websites.

Internet-Based Service

Services provided through the Internet, encompassing various activities like communication, retail, and media consumption.

Privileged

Having special rights, advantages, or immunities that are usually derived from one's socio-economic status, position, or membership in a particular group.

Conglomeration

A large corporation formed by the joining together of diverse companies across various industries.