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corporate diversification and investor diversification

Please assist with the attached problems.

1. What is the difference between corporate diversification and investor diversification? Why is this distinction important?

2. Discuss the significance of the terms "generic" (Porter) and "ideal type" (Miles and Snow).

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1. What is the difference between corporate diversification and investor diversification? Why is this distinction important?

There is a large difference between corporate diversification and investor diversification. Corporate diversification refers to a company expanding its source of operations through entering new businesses. From the perspective of market efficiency there are no obvious gains from such diversification especially when the acquired business is unrelated. However, there are other motives like ensuring growth, improving financial ...

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This solution gives you a detailed discussion on corporate diversification and investor diversification.

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