Substantial empirical evidence indicates that some forms of diversification can create significant shareholder wealth.

Question

Quizplus · Accepted Answer

This statement is true. Studies have shown that diversification through mergers and acquisitions, international expansion, and entering new business lines can lead to increased shareholder wealth. However, not all forms of diversification guarantee success and careful analysis and planning are necessary.

Substantial Empirical Evidence Indicates That Some Forms of Diversification Can