Author: Anonymous

The separation of the positions of CEO and chairperson of the board of directors reduces the power of the CEO over firm governance practices

Entrepreneurship is the economic engine driving many nations’ economies in the global competitive landscape

A firm pursuing an unrelated diversification strategy will most likely utilize a __________ structure.

James Abercrombie has a thriving consulting firm specializing in training boards of directors in decision-making skills. Mr. Abercrombie has had striking success in reducing conflict and hostility among directors and allowing boards to develop more cohesiveness. Mr. Abercrombie is considering expanding his consulting practice overseas. Which of the following statements is most likely to be true?

LG Company has units operating in significantly different industries and uses financial controls to manage its portfolio. LG is MOST likely using the __________ structure.

In general, when governance mechanisms are strong, managers have free rein in their decisions

Which of the following is NOT a benefit to the firm using the internal labor market to select a new CEO?

Severance packages are generally opposed, partly because they have a low level of success as a defense strategy. However, those who want to encourage top-level managers to accept a takeover bid that will best serve shareholders’ interest would tend to favor this option

One of the primary disadvantages of the global strategy and worldwide product divisional structure is that:

The firm of Bergeron has existed for hundreds of years, having made exquisite clocks and watches. In its advertising it refers to clocks the firm made for such past royalty as Marie Antoinette and the czars of Russia. Employees are constantly reminded of the firm’s rich history and its long tradition of excellence of design and execution. As part of its long-term strategic direction, Bergeron is motivating its employees through its: