Which of the Following Is Not a Reason That Diversified

question 64

Multiple Choice

Which of the following is not a reason that diversified firms might spin off businesses?

• A) Management may require specific skills that are not present.
• B) Anticipated economies of scope may not be realized.
• C) Funding may be needed for other businesses.
• D) The business is too related to other firm businesses.

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Definitions:

Environmental Costs

Environmental costs are expenses associated with the impact of an activity on the environment, including pollution mitigation, resource depletion, and habitat destruction.

Consumer Product Safety Act

A federal law that aims to protect consumers from products that pose fire, chemical, mechanical, or electrical hazards, promoting the safety of consumer products.

Product Liability

The legal responsibility of manufacturers and sellers to ensure that their products are safe and free from defects, and to compensate for any damages caused by their products.

Contaminated Products

Items that have been tainted with substances that are harmful or undesired, affecting the product's safety and quality.