What Rationales for Unrelated Diversification Are Not Likely to Increase

question 27

Multiple Choice

What rationales for unrelated diversification are not likely to increase shareholder value?

• A) To reduce risk by spreading the company's investments over a set of truly diverse industries
• B) To enable a company to achieve rapid or continuous growth
• C) To chance that market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
• D) To provide benefits to managers such as high compensation and reduction in employment risk
• E) All of the above

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Actions or conduct that are considered to be disruptive or harmful to oneself or to others.

System Linkage Roles

Positions or functions within an organization or system that facilitate the coordination and integration of different components or services.

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The process of acquiring professional assistance or support, often through scheduling, registration, or purchase.

Resources

Materials, money, staff, and other assets that can be drawn on by a person or organization to function effectively.