The Primary Source of Value Creation from Diversification Is Likely

question 11

Multiple Choice

The primary source of value creation from diversification is likely to be

• A)the linkages or synergies between the businesses concerned.
• B)risk reduction through balancing of counter-cyclical businesses.
• C)getting a price reduction when purchasing common resource inputs.
• D)balancing of cash generation, reducing the need to obtain investment finance externally.

---

Definitions:

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause distress or anxiety.

Compulsive Behaviors

Repetitive actions performed persistently and often against the individual's will, usually as a response to obsessive thoughts, leading to significant distress or impairment.

Phobias

Persistent, excessive, irrational fears of specific objects, activities, or situations that lead to a compelling desire to avoid them.

Social Phobias

A type of anxiety disorder characterized by an overwhelming and unreasonable fear of social situations, leading to avoidance and distress.