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:

Assertive Communication

A communication style in which individuals express their needs and feelings in a direct, honest, and respectful way.

Scientific Evidence

Evidence that is based on scientific research, methods, and experimentation.

Communication Process

The act of transferring information from one place, person, or group to another, involving a sender, message, medium, and recipient.

Psychosocial Needs

The aspects of psychological and social well-being that need to be met to ensure an individual's overall health and quality of life, including emotional support, social interaction, and mental health care.