Which of the Following Benefits of Diversification Explains the Idea

question 15

Multiple Choice

Which of the following benefits of diversification explains the idea that mergers are more likely when there is an expectation of positive changes in market share?

• 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:

Fraternal Twins

Twins who develop from two different eggs fertilized by two different sperm cells, resulting in siblings that are genetically unique.

Sexual Orientation

A natural, unchangeable, and lasting attraction to others, whether emotional, romantic, or sexual.

Fruit Flies

Small flies used extensively in genetic research due to their short life cycle and genetic variability.

Biological Influence

The impact of biological factors, such as genetics or physiology, on individual behavior and characteristics.