SEVI 3013H CH#9 EXAM REVIEW
QUESTIONS AND ANSWERS
business group - Answer-a set of firms that, though legally independent, are bound
together by a constellation of formal and informal ties and are accustomed to taking
coordinated action
control systems - Answer-__________ provide the information necessary for firms to
coordinate action and respond to environmental changes and feedback.
interactive - Answer-With contemporary control systems, the relationships between
strategy formulation, implementation, and control are highly ____________.
reactionary control systems - Answer-Fixed strategic goals and _____________
become dysfunctional form firms competing in highly unpredictable competitive
environments.
external governance control mechanisms - Answer-methods that ensure that
managerial actions lead to shareholder value maximization and do not harm other
stakeholder groups that are outside the control of the corporate governance system
market for corporate control - Answer-an external control mechanism in which
shareholders dissatisfied with a firm's management sell their shares
takeover constraint - Answer-the risk to management of the firm being acquired by a
hostile raider
principal-principal conflicts - Answer-conflicts between two classes of principals -
controlling shareholders and minority shareholders - within the context of a corporate
governance system
expropriation of minority shareholders - Answer-activities that enrich the controlling
shareholders at the expense of the minority shareholders
dynamic environments - Answer-In ____________, an inflexible commitment to
predetermined goals and milestones can prevent the very adaptability that is required of
a good strategy.
boundaries and constraints - Answer-_______________ can serve many useful
purposes for organizations, including:
- focusing individual efforts on strategic priorities
- providing short-term objectives and action plans to channel efforts
- improving efficiency and effectiveness
- minimizing improper and unethical conduct
QUESTIONS AND ANSWERS
business group - Answer-a set of firms that, though legally independent, are bound
together by a constellation of formal and informal ties and are accustomed to taking
coordinated action
control systems - Answer-__________ provide the information necessary for firms to
coordinate action and respond to environmental changes and feedback.
interactive - Answer-With contemporary control systems, the relationships between
strategy formulation, implementation, and control are highly ____________.
reactionary control systems - Answer-Fixed strategic goals and _____________
become dysfunctional form firms competing in highly unpredictable competitive
environments.
external governance control mechanisms - Answer-methods that ensure that
managerial actions lead to shareholder value maximization and do not harm other
stakeholder groups that are outside the control of the corporate governance system
market for corporate control - Answer-an external control mechanism in which
shareholders dissatisfied with a firm's management sell their shares
takeover constraint - Answer-the risk to management of the firm being acquired by a
hostile raider
principal-principal conflicts - Answer-conflicts between two classes of principals -
controlling shareholders and minority shareholders - within the context of a corporate
governance system
expropriation of minority shareholders - Answer-activities that enrich the controlling
shareholders at the expense of the minority shareholders
dynamic environments - Answer-In ____________, an inflexible commitment to
predetermined goals and milestones can prevent the very adaptability that is required of
a good strategy.
boundaries and constraints - Answer-_______________ can serve many useful
purposes for organizations, including:
- focusing individual efforts on strategic priorities
- providing short-term objectives and action plans to channel efforts
- improving efficiency and effectiveness
- minimizing improper and unethical conduct
