A company should diversify into multiple businesses only if ______ 1.economies of scope exist 2.the extra value created by the company is greater than the value that independent shareholders can...

A company should diversify into multiple businesses only if ______

1.economies of scope exist

2.the extra value created by the company is greater than the value that independent shareholders can create for themselves by risk diversification

3.the extra value created by the firm is greater than what can be created by another parent firm

4.all of the above three requirements are met

Jun 10, 2022

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