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:

North Korea

A country in East Asia, officially known as the Democratic People's Republic of Korea, known for its totalitarian government and isolation from much of the international community.

Economic Immigrants

International migrants who have moved from one country to another to obtain economic gains such as better employment opportunities.

International Migrants

International migrants are individuals who move from one country to another, often for reasons such as employment, education, or escape from conflict, which can impact both the origin and destination countries.

Cumulative Total Product

The overall quantity produced over a specific period when inputs are increased incrementally.