Which of the Following Benefits of Diversification Explains the Idea

question 33

Multiple Choice

Which of the following benefits of diversification explains the idea that a firm with many business lines can reduce swings in value because it receives only a small percentage of its revenue from any one of those business lines?

• A)Use of internal capital markets
• B)Economies of scale and scope
• C)Economizing on transaction costs
• D)Diversifying shareholder portfolios
• E)Identifying undervalued firms

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Definitions:

Stressors

Environmental, social, or physiological events or conditions that can trigger physical and psychological stress.

Diabetes 2

Also known as Type 2 Diabetes, a chronic condition that affects the way the body processes blood sugar (glucose), characterized by insulin resistance.

Insulin Supplements

Medical preparations used to manage diabetes by providing insulin, a hormone required for the metabolism of carbohydrates, fats, and protein.

Adaptive Responses

Behaviors or processes that individuals use to adjust to changes in their environment, promoting survival and well-being.