The failure of empirical research to find unambiguous evidence that related diversification outperforms unrelated evidence points to:
A)The fact that firm performance is the outcome of many factors of which diversification strategy is only one.
B)Reverse causation: it may be that poorly performing firms are more likely to take the risk of unrelated diversification.
C)Difficulties in determining whether diversification is related or unrelated.
D)All of these.

Question

Quizplus · Accepted Answer

The failure to find clear evidence can be attributed to multiple factors, including the complexity of firm performance, potential reverse causation, and challenges in classifying diversification types.

The Failure of Empirical Research to Find Unambiguous Evidence That