Shared Activities and Risk Reduction Are Usually Difficult-To-Duplicate Bases for Corporate

question 72

True/False

Shared activities and risk reduction are usually difficult-to-duplicate bases for corporate diversification, but tax advantages and employee compensation are usually relatively easy to duplicate.

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Definitions:

Average Return

A calculation that represents the typical gain or loss of an investment over a specified period.

Efficiency

The ability of an entity or system to achieve its goals with the least waste of time, effort, or material resources.

Market Prices

The current value at which an asset or service can be bought or sold in a competitive marketplace.

Historical Information

Data regarding past events, performance, and decisions in a company or market, used for research, analysis, and strategic planning.