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Product Diversification Provides Two Benefits to Managers That Do Not

Question 124

Multiple Choice

Product diversification provides two benefits to managers that do not accrue to shareholders: __________ and __________.


A) greater experience in a wider range of industries; lessening of managerial employment risk
B) the manager frequently invests in the acquired firm, which allows him or her extensive profits; the manager can frequently buy excess assets divested by the acquired firm
C) the manager's supervisory needs are lowered; the manager is allowed greater time to oversee a wider range of activities
D) the opportunity for higher compensation through firm growth; a reduction in managerial employment risk

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