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Why Managers Favor the Pursuit of Corporate Growth

Why are managers though to favor the pursuit of corporate growth ?

a. Growth results in large company size, and large size satisfies manager's 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

Solution Summary

Why are managers though to favor the pursuit of corporate growth ?

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