Question: A sound justification for unrelated diversification is a ) based on the premise that this strategy will help to stabilize earnings, that is , offsetting
A sound justification for unrelated diversification is
a based on the premise that this strategy will help to stabilize earnings, that is offsetting market downtrends in some of the company's businesses by cyclical upswings in its other businesses.
b based on the premise that this strategy can help meet or exceed the company's expectations for rapid or continuous growth.
c based on the premise that this strategy could resuscitate struggling companies whose operations can be turned around with the aid of the parent company's financial resources and managerial knowhow.
d based on the premise that this strategy can support managerial motives including prospects for higher compensation.
e based on the premise that this strategy can result in risk reduction by spreading a company's investments over a set of diverse industries.
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