Which of the Following Is Not a Reason for Firms

question 12

Multiple Choice

Which of the following is not a reason for firms to engage in value-neutral diversification?

• A)Risk reduction
• B)Uncertain future cash flows
• C)Avoiding anti-trust regulation
• D)Diversifying managerial employment risks

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Definitions:

Cross-sellers

Products or services that are promoted to existing customers alongside their original purchases to increase the value of their shopping basket.

Price Premiums

The additional amount that consumers are willing to pay for a product or service that they perceive as having higher value compared to its alternatives.

Frederick Reichheld

A business strategist best known for his work on customer loyalty and the development of the Net Promoter Score (NPS).

Loyal Customers

Consumers who repeatedly buy products or services from the same brand instead of turning to competitors.