Which of the Following Rationales for Pursuing Unrelated Diversification Is

question 7

Multiple Choice

Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value?

• A)Enabling a company to achieve rapid or continuous growth
• B)Reducing risk by way of spreading the company's investments over a set of truly diverse industries
• C)Stabilizing earnings,that is,market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses
• D)Providing benefits to managers such as high compensation and reduction in employment risk
• E)Restructuring an underperforming business

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Definitions:

Distractibility

The extent to which external stimuli or unrelated thoughts can divert an individual's attention from the task at hand.

Executive Functioning

cognitive processes including planning, working memory, attention, problem solving, verbal reasoning, inhibition, mental flexibility, task switching, and initiation and monitoring of actions.

Academic Performance

A measurement of a student's progress and achievements in educational subjects, often graded.

Systematically Scanned Pictures

Images obtained and processed in an organized manner for analysis or record-keeping.