Unrelated diversification makes sense only when doing so a. results in risk reduction by spreading a company's

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Unrelated diversification makes sense only when doing so

a. results in risk reduction by spreading a company's investments over a set of diverse industries.

b. supports managerial motives including the prospects for higher compensation.

c. meets expectations for rapid or continuous growth. stabilizes earnings, i.e., market downtrends in some of the company's businesses will be partially offset by cyclical upswings in its other businesses.

d. delivers enhanced shareholder value if an undervalued company can be purchased at a bargain price

Related Book For answer-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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Posted Date: Dec 27, 2023 03:19 AM

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Unrelated diversification makes sense only when doing so a. results in risk reduction by spreading a company's

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The detailed answer for the above question is provided below The answer is d Unrelated diversificati... View the full answer

Smith and Roberson Business Law

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