Which of the following is a disadvantage of growth by means of ...

[audie]

Which of the following is a disadvantage of growth by means of external growth strategies?
 
  A) Diversification of business risk
  B) Economies of scale
  C) Getting access to proprietary products or services
  D) Reducing competition
  E) Loss of organizational flexibility

Question 2

Adverse selection means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try
 
  to avoid hard work.
  Indicate whether the statement is true or false

[al]

Answer to Question 1

E

Answer to Question 2

FALSE

[audie]

Thank you

[al]

No problemo