An Unrelated Diversification Strategy Can Create Value Through Two Types

question 61

True/False

An unrelated diversification strategy can create value through two types of financial economies: (1) efficient internal capital allocations and (2) purchasing other firms, restructuring their assets, and selling them.

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Definitions:

Meticulousness

The quality of being extremely careful and precise; attention to detail.

Big Five Model

A theory that categorizes human personality traits into five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Characteristic

Traits or qualities that define an individual's distinctive nature or behavior, often determining how they interact with others and respond to situations.

Agreeableness

A personality trait that involves being compassionate, cooperative, warm, and friendly towards others.