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Question 10 (4 points) Listen 3 When an acquisition is undertaken with the only purpose in mind is to diversify the firm, then the following

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Question 10 (4 points) Listen 3 When an acquisition is undertaken with the only purpose in mind is to diversify the firm, then the following will be observed: 1) There is generally a positive synergy a occurring to all the combined firm divisions. 2) there is generally no value added to the combined entity 3) There is generally reduction in the systematic risk and an increase in the value of the firm O4) There are benefits to the shareholders since the latter should enjoy an otherwise unobtainable diversification )

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