Which of the Following Is Not Generally a Potential Benefit

question 21

Multiple Choice

Which of the following is not generally a potential benefit of diversification?

• A)Control systems rewarding/penalizing division managers based on business unit objective
• B)Economies of scale and scope
• C)Economizing on transaction costs
• D)Diversifying shareholder portfolios
• E)Identifying undervalued firms

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Definitions:

Perception

The cognitive process of interpreting and organizing sensory information to understand the environment.

Hypnotized

The state of having one's attention, awareness, and consciousness altered by hypnosis, making the individual more open to suggestion.

Visual and Auditory Receptors

Sensory cells located in the eyes and ears, responsible for converting light and sound waves into signals that can be interpreted by the brain.

Hypnotized Subjects

Individuals who are in a state of hypnosis, characterized by increased focus, concentration, and openness to suggestion.