In Making a Decision to Diversify,managers Should Use Value-Creating Reasons

question 40

Multiple Choice

In making a decision to diversify,managers should use value-creating reasons or face the risk that their firms will be acquired and they could lose their jobs. Which of the following is a value-creating reason to diversify?

• A)economies of scope
• B)desire for increased compensation
• C)reduced managerial risk
• D)low performance

---

Definitions:

Bargaining Session

A period of negotiation between parties, such as employers and employees, aiming to reach agreement on issues of mutual interest.

Marathon Negotiations

Extended and often intense negotiation sessions that require stamina and persistence, typically used to describe efforts to resolve complex or critical issues.

Work-Family Conflict

A form of conflict where the demands of work and family roles are mutually incompatible, leading to stress and tension.

Decreased Work Performance

A decline in the efficiency, effectiveness, or quality of work produced by an individual or group.