A company should diversify into multiple businesses only if ______
economies of scope exist
the extra value created by the company is greater than the value that independent shareholders can create for themselves by risk diversification
the extra value created by the firm is greater than what can be created by another parent firm
all of the above three requirements are met
which is correct option. ? why others are wrong ?
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Answer:
D
Explanation:
All three are meeting the conditions of the question . Diversity means different line of business.
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