The Growth Objective Can Be Negative for a Firm

Multiple Choice

The growth objective can be negative for a firm. Why?

A) A mature market could lead managers to invest profits in diversifying, rather than return the value to shareholders to invest elsewhere themselves
B) Top managers may have an incentive to grow the firm at the expense of long-term profits and shareholder interests
C) Even without diversification, sales maximisation does not usually lead to profit maximisation
D) All of the above