The Observation That Cash-Rich Firms Often Use the Funds to Diversify

question 85

Multiple Choice

The observation that cash-rich firms often use the funds to diversify rather than increase dividends indicates that:

• A)Diversification is too costly for individuals
• B)Growth is often valued for the sake of growth alone
• C)Diversification is synergistic
• D)Dividend-pricing models are of questionable value

---

Definitions:

Muscle Contractions

The process whereby muscle fibers shorten or lengthen to produce movement or apply force against resistance.

Nutrients

Essential substances that organisms need to acquire from their environment to maintain health and support growth.

Oxygen

A chemical element with symbol O, essential for the respiratory processes of most living organisms.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, and stroke.