The Main Check on Managerial Desires to Over-Diversify the Firm

question 41

Multiple Choice

The main check on managerial desires to over-diversify the firm is/are the

• A) external capital markets.
• B) internal capital market.
• C) shareholders.
• D) board of directors.

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Definitions:

Innate Experiences

Experiences that are considered to be natural, intrinsic, or inherent from birth, not influenced by external factors.

Worldviews

The basic mental framework of a person or society that includes all of their knowledge and perspective.

Religious Beliefs

A set of principles or values held by individuals or communities regarding spirituality, divinity, and moral codes based on faith or religion.

Resocialization

The process by which individuals learn new norms and values when adapting to a new cultural or social environment.