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Over Diversification Reasoning

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Which of the following do you believe is the primary reason for over diversification? Industrial policies, such as taxes and antitrust regulation, or because managers pursue their own self-interest through increased compensation and a reduced risk of job loss.

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The expert examines over diversification reasoning.

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I believe that the primary reason for over diversification is industrial policies, such as taxes and antitrust regulation, as well as the instability and uncertain nature of the economic situation. Due to the fact that diversification includes seeking to reduce risk as much as ...

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