Product Diversification Provides Two Benefits to Managers That Do Not

question 124

Multiple Choice

Product diversification provides two benefits to managers that do not accrue to shareholders: __________ and __________.

• A) greater experience in a wider range of industries; lessening of managerial employment risk
• B) the manager frequently invests in the acquired firm, which allows him or her extensive profits; the manager can frequently buy excess assets divested by the acquired firm
• C) the manager's supervisory needs are lowered; the manager is allowed greater time to oversee a wider range of activities
• D) the opportunity for higher compensation through firm growth; a reduction in managerial employment risk

---

Definitions:

Soil Horizons

Layers in the soil, each with its own distinct characteristics such as composition, texture, and color, developed over time.

Facilitation Model

A concept in ecology suggesting that the presence of one species positively affects the growth, establishment, or reproduction of another species, often leading to a more complex community structure.

Soil Enriched

Soil that has been enhanced in nutrients and organic matter, improving fertility and the ability to support plant growth.

Growth Rate

The rate at which an organism grows, often measured in terms of size, height, or mass increase over time.