Successful diversification is expected to increase variability in the firm's profitability as earnings are generated from different business units.

Name: Successful diversification is expected to increase variability in the firm's profitability as earnings are generated from different business units.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Successful diversification typically reduces variability in a firm's profitability by spreading risk across different business units, leading to more stable earnings.

Successful Diversification Is Expected to Increase Variability in the Firm's