Which of the Following Reasons for Diversification Is Most Likely

question 65

Multiple Choice

Which of the following reasons for diversification is most likely to increase the firm's value?

• A)increasing managerial compensation
• B)reducing costs through business restructuring
• C)taking advantage of changes in tax laws
• D)conforming to antitrust regulation

---

Definitions:

Information Processor

An entity, often a computer or the human brain, that receives, processes, stores, and outputs information.

Blank Slate

The idea that individuals are born without built-in mental content, and all knowledge comes from experience or perception.

Social Animal

An organism that highly engages in social interactions and is often dependent on a community or group for survival and benefits.

Social Cognition

The investigation into the methods by which individuals comprehend, retain, and utilize knowledge regarding others and social contexts.