Question

Among the value-neutral incentives to diversify, some come from the firm's external environment while others are internal to the firm. External incentives to diversify include: a. the fact that other firms in an industry are diversifying. b. pressure from stockholders who are demanding that the firm diversify. c. changes in antitrust regulations and tax laws. d. a firm's low performance.

Answer 1

c. changes in antitrust regulations and tax laws.

Step-by-step explanation:

Different forms of these incentives are other firms in an industry are:

1). the low performance of a firm.

2). changes in antitrust regulations and tax laws.

3). pressure from stockholders who demand that the firm diversify and also 4). horizontal acquisition.

These strategies are been used to enhance a company’s strategic competitiveness. Also its enablement to in earnings above an average rate of its returns. When the company works hard enough, they are seen to have given its resources, competencies, and also taking into account the external environmental opportunities and threats.