Agency costs include incentive costs, monitoring costs, enforcement costs, and individual financial losses incurred by principals

RueLim Industries has experienced tremendous growth recently. Two downsides to this expansion have been increased costs and negative environmental effects. If RueLim wants to reduce costs, it would make sense to pursue a corporate-level strategy. But such a strategy could not be used to mitigate the environmental effects of the company’s growth

Effectively managing the firm’s resource portfolio (financial, human, social, and organizational capital) is an important strategic leadership task

The increased use of the market for corporate control has decreased the sophistication and variety of managerial defense tactics that are used in takeovers

Induced strategic behavior does not result in true innovation because it is a top-down process rather than a bottom-up process

The risks of being accused of collusion are MOST likely under which of the following types of alliance?

The top management of RavenCrest, Inc. has significant stock options in RavenCrest. They are therefore more likely to gain in making an agreement to be acquired, especially if they have golden parachutes

If a stakeholder is dissatisfied with a firm, it will withdraw its support and give it to another firm

The strategic business unit (SBU) structure consists of at least three levels: the top level, the corporate headquarters; the next level, the SBUs; and the final level, SBU divisions

The more homogeneous a top management team, the more likely those managers will be innovative and willing to pursue strategic change