The attractiveness of diversification is consistent with which agency perspective?
A)Management serves its own interests.
B)Management and stockholders share the same interests.
C)Management pursues the interests of the stakeholders.
D)None of the above.

Question

Quizplus · Accepted Answer

Diversification can be attractive from the perspective where management serves its own interests, as it may allow them to expand their control over more resources and secure their positions, even if it does not necessarily maximize shareholder value.

The Attractiveness of Diversification Is Consistent with Which Agency Perspective