Product Diversification Provides Two Benefits to Managers That Do Not

question 17

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,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