MirGold uses a related constrained strategy in order to share resources and activities across its many businesses. The multidivisional structure form that is best suited for MirGold is the cooperative form

Which of the following statements about corporate governance in Germany is false?

Long-term incentives facilitate a board of directors’ pay-related decisions designed to avoid potential agency problems by linking managerial compensation to the wealth of common shareholders

Innovations can only be produced by actions and activities within the firm

Firms implementing the multidomestic strategy often attempt to isolate themselves from global competitive forces by establishing protected market positions or by competing in industry segments that are most affected by differences among local countries

In order to be successful, a new entrepreneurial enterprise should be sheltered from the global environment until it is firmly established in domestic markets

There has been an increased need for effective collaboration between board members and top-level managers as boards of directors have become more involved in:

Ray and Gina own shares of stock in a number of different companies. None of their holdings are very large. Because they make their own investment decisions, they are not as dependent on the board of directors to represent their interests as the large-block shareholders are

The primary role of the board of directors is to monitor and control top-level executives to protect owners’ interests

The use of executive compensation as a governance mechanism is more challenging to firms implementing international strategies than those strictly operating domestically