The Failure of Empirical Research to Find Unambiguous Evidence That

question 13

Multiple Choice

The failure of empirical research to find unambiguous evidence that related diversification outperforms unrelated evidence points to:

• A)The fact that firm performance is the outcome of many factors of which diversification strategy is only one
• B)Reverse causation: it may be that poorly performing firms are more likely to take the risk of unrelated diversification
• C)Difficulties in determining whether diversification is related or unrelated
• D)All the above.

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Definitions:

Anabolic Steroids

Synthetic substances similar to the male hormone testosterone, used to increase muscle mass and strength.

Irrationally Aggressive

Exhibiting aggressive behavior without a reasonable cause or in a manner disproportionate to the situation.

Go System

A hypothetical construct in psychology that explains the initiation of goal-directed behavior, contrasting with inhibitory processes.

Gray's Model

A psychological theory that categorizes personality based on responsiveness to rewards and punishments, focusing on the behavioral inhibition and activation systems.