Which of the following is not a reason that diversified firms might spin off businesses?
A) Management may require specific skills that are not present.
B) Anticipated economies of scope may not be realized.
C) Funding may be needed for other businesses.
D) The business is too related to other firm businesses.

Question

Quizplus · Accepted Answer

This statement is incorrect as businesses that are too related to other firm businesses are often spun off to avoid conflicts of interests or to focus on core competencies. The other three options are common reasons for diversified firms to spin off businesses.

Which of the Following Is Not a Reason That Diversified