Managerial motives to seek diversification beyond value-creating and value-neutral levels include a desire to:
A) improve marketability to other firms.
B) effectively use corporate resources.
C) provide higher returns to corporate stakeholders.
D) increase compensation.

Question

Quizplus · Accepted Answer

Managers may seek diversification to increase their own compensation, as larger and more complex firms often justify higher executive pay.

Managerial Motives to Seek Diversification Beyond Value-Creating and Value-Neutral Levels