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:

Postcolonial Countries

Nations that gained independence after being colonized, continuing to face challenges related to identity, development, and legacy issues.

Foreign Investments

Investments made by individuals, companies, or governments in business interests located in another country, outside of the investor's own country.

Globalization

The process by which businesses, cultural concepts, or technologies spread worldwide, leading to increased interconnectedness and interdependence among the world's economies, cultures, and populations.

McDonaldization

A concept that describes the process by which principles of the fast-food industry, like efficiency, predictability, and control, dominate other sectors of society.