Which of the Following Is NOT an Erroneous Rationale for Unrelated

question 101

Multiple Choice

Which of the following is NOT an erroneous rationale for unrelated diversification?

• A) risk reduction by spreading the company's investments over a set of diverse industries
• B) expectations for rapid or continuous growth
• C) stabilize earnings, i.e. market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
• D) managerial motives including the prospects for higher compensation
• E) growth by acquisition of an undervalued company at a bargain price can deliver enhanced shareholder value

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Definitions:

Client Participation

The involvement of clients or customers in the development, decision-making, or feedback process of a project or service to ensure it meets their needs.

Client's Premises

The physical location or property owned or occupied by a client, often mentioned in service agreements or contracts.

Impartial And Honest

Being fair and truthful, without bias or deceit.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.