Question 1: Which of the following is not generally a potential benefit of diversification?
Control systems rewarding/penalizing division managers based on business unit objective
Diversifying shareholder portfolios
Identifying undervalued firms
Economizing on transaction costs
Economies of scale and scope
Solution
Identifying undervalued firms
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Question 1- Which of the following is not generally a potential benefi.docx
1. Question 1: Which of the following is not generally a potential benefit of diversification?
Control systems rewarding/penalizing division managers based on business unit objective
Diversifying shareholder portfolios
Identifying undervalued firms
Economizing on transaction costs
Economies of scale and scope
A. Control systems rewarding/penalizing division managers based on business unit objective
B. Diversifying shareholder portfolios
C. Identifying undervalued firms
D. Economizing on transaction costs
E. Economies of scale and scope
Solution
Identifying undervalued firms
C. Identifying undervalued firms