Which of the Following Benefits of Diversification Explains the Idea

question 29

Multiple Choice

Which of the following benefits of diversification explains the idea that combining unrelated businesses can allow firms to finance projects through cross-subsidization when they previously were unable to finance the same projects externally?

• 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:

Stimulation

The action of encouraging something to function, increase, or develop, usually through external input or factors.

Parenting Strategies

Approaches and methods used by parents to guide, educate, and support their children throughout their development.

Distraction

A thing or a factor that diverts or shifts attention away from the intended focus, often leading to a decrease in the ability to concentrate.

Emotional Displays

involve the outward expression of emotions through facial expressions, body language, and vocal tones.