When Examining the Relationship Between Diversification and Performance, It Appears

question 80

Multiple Choice

When examining the relationship between diversification and performance, it appears that diversification benefits shareholders up to a point, but tends to dissipate value at ________.

• A) high levels of consolidation
• B) high levels of diversification
• C) low levels of consolidation
• D) low levels of diversification

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Definitions:

Distinctiveness

The quality of being distinguishable or markedly different from others, often leading to a sense of individuality.

Consistency

The degree to which a person or process reliably produces the same results over time.

Consensus

A general agreement or collective opinion among a group of individuals.

Frequency

The rate at which a periodic phenomenon occurs, such as the number of waves passing a point in one second.