Managerial motives to seek diversification include a desire to:
A) improve their marketability to other firms.
B) effectively use corporate resources.
C) provide higher returns to corporate stakeholders.
D) increase their compensation.

Question

Quizplus · Accepted Answer

Managers may seek diversification to increase their compensation, as larger and more complex firms often justify higher executive pay.

Managerial Motives to Seek Diversification Include a Desire To