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

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Definitions:

Pneumatic Suspension

An air suspension.

Height Control Valve

A simple lever-actuated valve used on an air suspension system to automatically maintain chassis ride height at a preset dimension; provides the suspension with its adaptive capability. Also known as a leveling valve.

Insufficient Torque

A condition where the applied torque is not enough to overcome the load or resistance.