Question

In: Operations Management

Companies diversify for a number of general reasons. Which of the following is not one of...

Companies diversify for a number of general reasons. Which of the following is not one of those reasons? seeking growth to gain market power to reduce financial risk to increase the number of shareholders

seeking growth

to gain market power

to reduce financial risk

to increase the number of shareholders

Solutions

Expert Solution

To increase the number of shareholders

Organization generally diversify in order to sustain and grow in a field of business as the level of competition both in terms of quality and quantity is huge. The organization may also seek growth and expect market power but increasing the number of shareholders is not an objective of diversification accordingly.


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