Diversification Achieved Through a Merger Can Reduce the Variability of the Earnings

question 162

True/False

Diversification achieved through a merger can reduce the variability of the earnings of the acquiring firm.

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Definitions:

Chemical Change

A process that transforms substances into different substances through the rearrangement of atoms.

Kinetic Energy

The energy that an object possesses due to its motion, dependent on the object's mass and velocity.

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Molecules

The smallest unit of a chemical compound that can retain the chemical properties of the compound, consisting of one or more atoms bonded together.