Diversiﬁcation usually increases the ﬁnancial risks of a company but adds value for its shareholders.

Name: Diversiﬁcation usually increases the ﬁnancial risks of a company but adds value for its shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diversification can actually decrease financial risks for a company by spreading them across different industries or markets. However, it may not always add value for shareholders as it depends on the success of the diversification strategy.

Diversiﬁcation Usually Increases the ﬁNancial Risks of a Company but Adds