Managerial Motives for Diversification That May Advance Their Personal Careers

question 27

Multiple Choice

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:

• A)​Leveraging connections with foreign governments.
• B)​Reducing managers' employment risk.
• C) ​A focus on the core competencies of the firm.
• D) ​Searching for formal marketing-supporting and marketing-opening policy changes.

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Definitions:

Peter Lynch

An acclaimed former mutual fund manager, known for his tenure at Fidelity Magellan Fund and authoring several key investment strategy books.

Mature Industries

Industries that have experienced long-term growth and are characterized by slow or no growth, stable revenues, and little innovation.

Auto Manufacturing

The process of producing vehicles through the combination of parts, components, and assembly techniques in a factory.

Asset Allocation

An investment strategy that spreads investments across various asset categories, such as stocks, bonds, and real estate, to manage risk and return.