Which of the Following Rationales for Pursuing Unrelated Diversification Is

question 43

Multiple Choice

Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?

• A) 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 reduced unemployment risk
• E) To restructure an underperforming business

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Definitions:

Society

A structured community of individuals sharing geographical or social territory, typically subject to the same political authority and cultural expectations.

Physical Punishment

The practice of causing physical pain or discomfort to someone as a form of corrective measure or discipline.

Child Abuse

Physical, sexual, emotional mistreatment, or neglect of a child by a caregiver or responsible person.

Disciplining Children

refers to the methods and strategies used by parents or caregivers to teach children right from wrong, establish rules, and instill moral values.