Which of the Following Benefits of Diversification Explains the Idea

question 33

Multiple Choice

Which of the following benefits of diversification explains the idea that a firm with many business lines can reduce swings in value because it receives only a small percentage of its revenue from any one of those business lines?

• 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

Grasp the concept and application of hiding text and managing its visibility within a document.

Understand how to enhance accessibility and readability for users with disabilities by appropriately using alt text and content control.

Comprehend the management of document objects, including pictures and shapes, through arranging and aligning techniques.

Grasp the importance of document formatting options like paragraph settings to improve document flow and readability.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, all selling identical products, where no single firm can influence the market price.

Monopoly Price

The price a monopolist sets, which is typically higher than both marginal and average costs, maximizing profits due to lack of competition.

Remarkable Healing

An extraordinary or exceptional process of recovery from an injury or disease.

Reaction Function

Describes how one player in a game reacts to the strategy chosen by another player, often used in the study of oligopoly markets.