The Expression "Conglomerate Discount" Means

question 35

Multiple Choice

The expression "conglomerate discount" means:

• A)The ability of a widely diversified firm to exploit economies of scope to reduce its overall costs
• B)The willingness of stock exchanges to offer discounted listing fees in order to attract highly diversified firms
• C)The stock market tends to value diversified companies at less than their break-up value
• D)The lower rates of return that highly diversified companies offer to their shareholders.

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Definitions:

Delivery Truck

A vehicle used by companies to transport goods from warehouses to retail locations or directly to consumers.

Adjusting Entries

Entries compiled at the termination of an accounting interval aiming to apportion income and expenditure to their rightful temporal occurrence.

Trial Balance

A financial spreadsheet where the totals of all ledger balances are gathered into columns for debits and credits, ensuring these totals match.

T Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right.