Which of the following is NOT a governance mechanism that may limit managerial tendencies to over-diversify?
A) The market for corporate control
B) The Board of Directors
C) Surveillance technologies
D) Executive compensation practices

Question

Quizplus · Accepted Answer

Surveillance technologies are not typically considered a governance mechanism that limits managerial tendencies to over-diversify. Some examples of other governance mechanisms that may limit over-diversification include the market for corporate control, the Board of Directors, and executive compensation practices. Surveillance technologies may be used to monitor and control various aspects of a company's operations, but their focus is not necessarily on limiting diversification.

Which of the Following Is NOT a Governance Mechanism That