Which of the Following Occur When Managers Undertake Growth-Oriented Investments

question 16

Multiple Choice

Which of the following occur when managers undertake growth-oriented investments to increase an FI's size that may be inconsistent with stockholders' value-maximizing objectives?

• A)Technology risk.
• B)Operational efficiency.
• C)Agency conflicts.
• D)Diseconomies of scale.
• E)Diseconomies of scope.

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Definitions:

Input-Output Control

A monitoring and management technique used in manufacturing to balance input materials and output products to maintain efficiency and reduce waste.

Work Centre

A specified location where work is performed, containing the necessary tools, equipment, and labor skills.

Jobs

Positions of employment within companies or organizations where individuals are hired to perform specific duties in exchange for compensation.

Processing Centres

Facilities or locations where raw materials or inputs are transformed into finished goods or services through various processes.