Proper diversification generally results in the elimination of risk

Which of the following omissions best describes a corporate governance shortcoming of Zero's board of directors? The board's failure to:

A) Address the potential conflicts of interest between managing the firm's hedge fund and its mutual fund business B) Meet the market opportunity for a new kind of mutual fund C) Establish the hedge fund operation in separate corporation

A successful project that also creates a need for a change to organizational structure is probably terminated by:

A) Extinction. B) Integration. C) Starvation. D) Addition.