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:

Partner Difficulties

Challenges or problems that arise within the context of a partnership or collaboration, affecting its functionality or goals.

Parent-Child Relationship

The connection between a parent and their child characterized by elements of care, guardianship, guidance, and love.

Brokering

The act of arranging or negotiating agreements between two or more parties, often in reference to financial transactions or information exchange.

Social Work Role

The functions, responsibilities, and activities that social workers engage in to provide services, support, and advocacy.