To Create Value for Shareholders Via Diversification, a Company Must

question 35

Multiple Choice

To create value for shareholders via diversification, a company must

• A)get into new businesses that are profitable.
• B)diversify into industries that are growing rapidly.
• C)spread its business risk across various industries by only acquiring firms that are strong competitors in their respective industries.
• D)diversify into businesses that can perform better under a single corporate umbrella than they could perform operating as independent, stand-alone businesses.
• E)diversify into businesses that have either key success factors or value chains that are similar to its present businesses.

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Definitions:

Contagious Febrile Disease

Infectious disease characterized by fever and can spread from person to person.

Delayed Absorption

Refers to a slower rate of a drug or nutrient entering the bloodstream after administration or consumption, potentially due to formulation, bodily functions, or interactions.

Muscular Tissue

A type of body tissue made up of fibers that contract to produce movement.

Catarrhal Stage

Inflammation of the mucous membranes.