Why are managers thought to engage in empire building?
A) Companies that do not grow stagnate
B) The pursuit of growth represents the best way of maximizing the long-run profitability of the company.
C) Growth is designed to increase market share, which in turn increases company profits.
D) Growth results in large company size, and large size satisfies managers' needs for power, status, income, and job security.
E) Stockholders would rather invest in large companies than in small ones.
Correct Answer:
Verified
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