The Following Managerial Motives for Conglomerations Do Not Benefit Shareholders

question 43

Short Answer

The following managerial motives for conglomerations do not benefit shareholders except:
a. Norms.
b. Reducing managers' employment risk.
c. Organizational stability.
d. Pursuing power, prestige, and income.
e. Empire building.

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Definitions:

Formalization

The extent to which rules, procedures, and standards are written and explicitly articulated within an organization.

Duplication

The act of making an exact copy of something, often used in the context of data replication or the reproduction of research results for validation.

Underutilization

The situation where resources, such as personnel, equipment, or capacity, are not being used to their full potential.

Departmentalization

Departmentalization is an organizational strategy of dividing a company or institution into specialized sectors or departments, each focused on a distinct function or area of operation.