Which of the following is not generally a potential benefit of diversification?
A)Control systems rewarding/penalizing division managers based on business unit objective
B)Economies of scale and scope
C)Economizing on transaction costs
D)Diversifying shareholder portfolios
E)Identifying undervalued firms

Question

Quizplus · Accepted Answer

Control systems rewarding/penalizing division managers based on business unit objective is not a potential benefit of diversification. It is a management strategy for aligning the objectives of different business units within a diversified firm.

Which of the Following Is Not Generally a Potential Benefit