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:

Tax Revenue

Government income generated from taxes levied on individuals and businesses.

Economic Instability

A situation where there is a high degree of unpredictability or fluctuation in the economic performance of a country, often characterized by high inflation, unemployment, and erratic growth.

Monetarists

Monetarists are economists convinced that changes in the amount of money circulating significantly impact a country's production in the short term and affect its price levels over extended durations.

School of Economics

An academic discipline that studies the production, distribution, and consumption of goods and services.