Discuss How the Potential Benefits of Diversification May Be Adversely

question 49

Essay

Discuss how the potential benefits of diversification may be adversely affected by conflicts between managers' interests and shareholders' interests.

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Definitions:

Reinforcement Theory

A psychological concept suggesting that behavior is shaped and conditioned by its consequences, with positive outcomes reinforcing the behavior and increasing its likelihood of recurrence.

Positive Consequences

Favorable outcomes or benefits that result from a specific behavior or action, often reinforcing the behavior.

Theoretical Frameworks

Structures of concepts, assumptions, and their relations, used to support or guide research, providing a comprehensive understanding of a phenomenon.

Performance Appraisals

The systematic evaluation of an employee's job performance and productivity, typically to determine compensation, promotions, and training needs.