When Evaluating Strategic Fit Benefits That Related Diversification Can Deliver,one

question 81

Multiple Choice

When evaluating strategic fit benefits that related diversification can deliver,one must keep in consideration a number of factors.Which one is not relevant?

• A)Shareholder value stemming from a diversified business cannot be replicated by simply owning a diversified portfolio of stocks.
• B)The capture of cross-business strategic fits benefits is possible only through related diversification.
• C)Cross-business strategic fit benefits are not automatically realized;the benefits materialize only after management has successfully pursued internal actions to capture them.
• D)Shareholder value is created when the diversified company's profitability exceeds expectations.
• E)Related diversification is the process of holding the stock of many businesses in a portfolio.

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Definitions:

Auditory Cortex

The part of the brain that processes auditory information, located in the temporal lobe.

Temporal Lobe

A region of the cerebral cortex responsible for processing auditory information and is involved in memory and emotion.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound, aiding in pitch perception.

High-Pitched Sounds

Sounds that have a high frequency, typically perceived as sharp or squeaky by the human ear.