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Why Are Some Managers Thought to Engage in Empire Building

Question 40

Multiple Choice

Why are some managers thought to engage in empire building?


A) Growth results in large company size, and large size satisfies managers' needs for power, status, income, and job security.
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) Companies that do not grow stagnate.
E) Stockholders would rather invest in large companies than in small ones.

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