A major reason why managers are attracted to diversification is

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Managers see diversification as a way to reduce risk and secure their job, and if not it may look dynamic for securing their next job. Shareholders may also expect diversification, but it is not a major reason for managers to pursue diversification. Similarly, while diversification may sharpen managerial skills, this is not a primary reason why managers are attracted to it. The extra complexity of diversification may actually be a deterrent for some managers.

A Major Reason Why Managers Are Attracted to Diversification Is