Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:
A)Leveraging connections with foreign governments.
B)Reducing managers' employment risk.
C) A focus on the core competencies of the firm.
D) Searching for formal marketing-supporting and marketing-opening policy changes.

Question

Managerial motives for diversification that may advance their personal careers without aligning with the interests of the firm include:
A)​Leveraging connections with foreign governments.
B)​Reducing managers' employment risk.
C) ​A focus on the core competencies of the firm.
D) ​Searching for formal marketing-supporting and marketing-opening policy changes.

Quizplus · Accepted Answer

Managers may pursue diversification to reduce their own employment risk, even if it does not align with the long-term interests of the firm. This could involve investing in unrelated businesses or areas where the firm has no expertise or competitive advantage. The other options listed (leveraging connections with foreign governments, focusing on core competencies, searching for marketing-related policy changes) may potentially align with the interests of the firm and its shareholders.

Managerial Motives for Diversification That May Advance Their Personal Careers