A Company Can Diversify Its Business Activities by Developing,owning and Subsequently

question 14

True/False

A company can diversify its business activities by developing,owning and subsequently leasing real estate to other companies.Because of the diversification benefits,shareholder value is always increased.

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Definitions:

Gross Income

The total income from all sources before deductions, taxes, and expenses.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, determined by supply and demand.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate.

Gross Income

The total income from all sources before any deductions or taxes are taken out.