How Can a Firm Pursuing a Diversification Strategy Enhance Its

question 89

Multiple Choice

How can a firm pursuing a diversification strategy enhance its overall corporate performance by leveraging financial economies?

• A) by using internal capital markets as a source of value creation
• B) by adding more unrelated businesses into its corporate portfolio
• C) by increasing its coordination and influence costs
• D) by investing in businesses under the question mark quadrant of the BCG matrix

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Definitions:

NMR

Nuclear Magnetic Resonance, a spectroscopic technique used to determine the structure of molecules.

IR

An abbreviation for infrared spectroscopy, a method for studying molecules by observing their interaction with infrared light to identify chemical bonds and functional groups.

Medium

An environment or substance in which other materials or reactions are hosted or take place, potentially affecting their properties.

Doublet

An NMR signal that is split into two peaks of equal intensity, indicating the presence of a neighboring proton with a spin-spin coupling effect.