Which of the following occur when managers undertake growth-oriented investments to increase an FI's size that may be inconsistent with stockholders' value-maximizing objectives?
A)Technology risk.
B)Operational efficiency.
C)Agency conflicts.
D)Diseconomies of scale.
E)Diseconomies of scope.

Question

Quizplus · Accepted Answer

Undertaking growth-oriented investments that may be inconsistent with stockholders' value-maximizing objectives can lead to agency conflicts. This occurs when managers pursue their own interests at the expense of shareholders.

Which of the Following Occur When Managers Undertake Growth-Oriented Investments