Which of the Following Is Not Generally a Potential Benefit

question 21

Multiple Choice

Which of the following is not generally a potential benefit of diversification?

• A)Control systems rewarding/penalizing division managers based on business unit objective
• B)Economies of scale and scope
• C)Economizing on transaction costs
• D)Diversifying shareholder portfolios
• E)Identifying undervalued firms

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Definitions:

Script Schema

A cognitive framework that organizes information and guides an individual's understanding and expectations in a specific context.

Experienced Team Leader

An individual who has substantial knowledge and skills in guiding a team effectively toward its goals.

Stereotyping

Occurs when people make a generalization, usually exaggerated or oversimplified (and potentially offensive), that is used to describe or distinguish a group.

Information Overload

The difficulty in understanding an issue and making decisions due to the presence of too much information.