69. Corpoprice governance is all of the adhering to EXCEPTa. mechanisms provided to recognize and also manage the strategic direction and also performance of institutions.b. a way to create and also maintain harmony between owners and peak managers whose interests may problem. c. ensuring that top managers" interests are aligned via the interests of stockholders.d. deal with problems among corpoprice employees.
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70. In the USA, the basic goal of company is to a. ensure customer satisfactivity.b. maximize shareholder wealth. c. provide project protection.d. geneprice revenues.
71. In the United States, a firm"s vital stakeholder(s) is(are) the a. federal government.b. executives.c. shareholders. d. customers.
72. Which of the complying with is NOT an inner governance mechanism?a. the board of directorsb. ownership concentration c. executive compensationd. the market for corporate control
73. Corpoprice administration revolves approximately the relationship in between which two parties?a. shareholders and also the board of directors b. shareholders and also managersc. the board of directors and managersd. None of the these alternatives are correct.
74. Corpoprice administration is necessary to nations because a. shareholders desire huge stock retransforms.b. firms look for to invest in nations with national governance requirements that are acceptable to them. c. firm boards have actually lobbied for strong administration.d. the USA needs that other countries take on its governance methods.
75. Amos Ball, Inc., is a printing firm in Iowa that has actually been family owned and also regulated for 3 generations.Which of the complying with statements is the majority of likely to be TRUE?a. Agency costs at Amos Ball are high.b. If research findings are valid, Amos Ball, Inc., will certainly percreate better if a household member is CEO than if an outsider is CEO.c. At Amos Ball, the possibility for managerial opportunism is high.d. The features of risk-bearing and also decision making are sepaprice at Amos Ball.
76. Complete the following: In little firms, managers often very own a _____percentage of the firm, which implies tbelow is _____ separation between ownership and also managerial regulate.a. small; tiny b. small; big c. large; smalld. large; large
77. The separation in between firm ownership and also monitoring creates a(n) _____ relationship. a. governanceb. manage c. agencyd. dependent
78. An firm relationship exists when one party delegateways a. decision-making obligation to a second party.b. financial obligation to employees.c. strategy implementation actions to sensible supervisors. d. ownership of a firm to a 2nd party.
79. Managerial employment danger is thea. hazard that supervisors will behave actually opportunistically.b. hazard undertaken by supervisors to earn stock options.c. managers" threat of project loss, loss of compensation, and/or loss of reputation.d. hazard managers will certainly not find a new peak management place if they must be dismissed.
80. Managers may decide to invest _____ in assets that are not associated through the firm"s present lines of organization to increase the firm"s level of diversification and also decrease their employment threat. a. unsubstantial profitsb. cost-free cash flows c. marginal revenues d. frozen assets
81. Product diversification gives two benefits to supervisors that execute not accrue to shareholders: _____ and _____. a. greater experience in a broader range of industries; lessening of managerial employment riskb. the manager commonly invests in the obtained firm, which enables him or her substantial profits; the manager deserve to typically buy excess assets divested by the gained firmc. the manager"s supervisory requirements are lowered; the manager is enabled higher time to overcheck out a broader variety of activitiesd. the chance for better compensation via firm growth; a reduction in managerial employment risk
82. The optimal monitoring team at Sierra Infusion is pertained to around the decreasing performance of firms in their industry. The team members are ending up being involved about the protection of their work at Sierra Infusion. At a meeting over dinner, the optimal monitoring team agrees to go to the board of directors with a proposal fora. increased diversification of Sierra Infusion.b. the enhancement of external directors to the board.c. raised shareholder participation in decision making. d. higher concentration on Sierra"s core market.
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83. In comparison to managers" desires, shareholders typically choose that complimentary cash flows be a. used to diversify the firm.b. returned to them as dividends. c. offered to minimize corporate debt.d. re-invested in added corporate assets.
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