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Company S manufactures bed frames and mattresses. The top managers at Company S want to diversify the business by acquiring an office furniture manufacturing company.
Company S manufactures bed frames and mattresses. The top managers at Company S want to diversify the business by acquiring an office furniture manufacturing company. The acquisition would increase job security and provide higher compensation for the top managers. The acquisition would create greater power for the top managers rather than increase shareholder value. In this scenario, the acquisition decision is a result of a. experience-curve effects. b. resource ambiguity. c. time compression diseconomies. d. principal-agent problems
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