Which of the Following Statements About Corporate Diversification Is Incorrect

question 51

Multiple Choice

Which of the following statements about corporate diversification is incorrect?

• A)Creating added value for shareholders via diversification requires building a multibusiness company where the whole is greater than the sum of its parts.
• B)Diversification moves that satisfy all three diversification tests have the greatest potential to grow shareholder value over the long term.
• C)The more attractive an industry's prospects are for growth and good long-term profitability,the less expensive it can be to enter.
• D)Diversification cannot be considered a success unless it results in added shareholder value-value that shareholders cannot capture for themselves by spreading their investments across the stocks of companies in different industries.
• E)Shareholder value is not created by diversification unless it passes the "better off" or "1 + 1 = 3 test."

Analyze the role of genetic variation and sexual reproduction in response to parasitic threats.

Describe the mechanisms plants use to defend against herbivory.

Distinguish between microparasites and macroparasites and their effects on hosts.

Understand the role of ecological factors (such as climate change and habitat modification) in shaping species interactions.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset where the expense is evenly allocated over its useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Cash Transaction

A financial exchange involving the immediate payment of cash for the purchase of goods or services.

Accumulated Depreciation

The cumulative sum of depreciation expense allocated for a physical asset from the time it was first used.