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:

Temperature

A physical quantity representing the degree of hotness or coldness of an object or substance, typically measured in degrees Celsius, Fahrenheit, or Kelvin.

Proximity Switches

Sensors that detect the presence or absence of an object without physical contact, often used in industrial automation for controlling machinery or processes.

Physical Contact

The direct touching or connection between objects or components, often relevant in switches, sensors, and electrical circuits.

Electromechanical Relay

A switch operated by an electromagnet to open or close one or many sets of contacts, used in control systems.