A Major Reason Why Managers Are Attracted to Diversification Is

question 44

Multiple Choice

A major reason why managers are attracted to diversification is

• A)they believe that shareholders expect it of them, to show dynamism.
• B)it sharpens their managerial skills.
• C)many managers are attracted to the extra complexity of diversification.
• D)the experience may reduce risk, and secure their job; and if not it looks dynamic for securing their next job.

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Definitions:

Altruistic Behavior

Actions intended to benefit others without expecting personal gain.

Costs And Benefits

Costs and benefits refer to the negative and positive outcomes, respectively, that are considered when making decisions or evaluating actions and their impacts.

Social Trap

A situation in which a group of individuals act against their best interests by pursuing short-term gains, leading to a worse situation for all in the long term.

Collective Harm

Damage or injury that affects a group or community rather than an individual.