What Rationales for Pursuing Unrelated Diversification Are NOT Likely to Increase

question 53

Multiple Choice

What rationales for pursuing unrelated diversification are NOT likely to increase shareholder value?

• A) In order to reduce risk by way of spreading the company's investments over a set of truly diverse industries.
• B) To enable a company to achieve rapid or continuous growth.
• C) To chance that market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses.
• D) To provide benefits to managers such as high compensation and reduction in employment risk.
• E) All of these.

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Definitions:

Ultrasonic Cleaning

A cleaning process that uses ultrasonic waves in a solution to remove dirt and contaminants from objects.

Delicate Instruments

Tools or devices designed with precision and care, often used in specialized fields like surgery or laboratory research.

Autoclave

A pressure chamber used to sterilize equipment and supplies by subjecting them to high-pressure saturated steam.

Disinfected Supplies

Items that have been treated with chemical agents to destroy harmful microorganisms.