A mature firm with well-established products and substantial market share will probably offer low base pay and benefits but high incentives.
Answer the following statement true (T) or false (F)
False
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In dealing with a negative situation, if company leaders provide information designed to convince others that the company was not responsible for the negative situation, the company is using excuses as a form of impression management
Indicate whether the statement is true or false
For an unrelated diversification strategy to produce financial results above that of stand-alone entities, executives must do all of the following except
A. negotiate favorable acquisition prices (to satisfy the cost of entry test). B. satisfy the attractiveness test, the cost of entry test, and the better-off test. C. leverage the cross-business strategic fit advantage effectively. D. diversify into businesses that can produce consistently good earnings and returns on investment and thereby satisfy the attractiveness test. E. do a superior job of corporate parenting via high-level managerial oversight and resource sharing, financial resource allocation and portfolio management, or restructuring underperforming businesses (to satisfy the better-off test).
________ is the degree of discontinuous change that occurs within the industry.
A. Dynamism B. Complexity C. Buffering D. Interconnectedness E. Environmental uncertainty
Which of the following statements is CORRECT?
A. Well-designed bond covenants are useful for reducing potential conflicts between stockholders and managers. B. The bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail. C. Stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value. D. Takeovers are most likely to be attempted if the target firm's stock price is above its intrinsic value. E. The efficiency of the U.S. economy would probably be increased if hostile takeovers were absolutely forbidden.