The essence of entrepreneurship is to capture most of the existing markets from less aggressive and innovative competitors

Stock option repricing, where the strike price value of the option has been lowered from its original position, sometimes happens when firm performance is poor

Amazon’s Dash button allows customers to reorder household essentials at the click of a button. This is an example of a radical, or novel, innovation that provided significant technological changes

Failures of corporate internal controls and inadequate internal control systems allowed unethical executives at such companies as Enron and WorldCom to act in their own self-interest

Institutional owners, despite their size, are usually unable to discipline ineffective top-level managers and cannot influence a firm’s choice of strategies and overall strategic direction

Generally, a board member who is a source of information about a firm’s day-to-day activities is classified as a(n) __________ director.

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (e.g., airline alliances)

Firms in China that have higher state ownership have been shown to have more volatility and lower market value, in part because government-mandated social goals take precedence over shareholder returns

Both top executives and owners of the firm wish to diversify the firm to reduce risk

Awareness by top managers of the existence of external investors in the form of individuals (e.g., Carl Icahn) and groups (e.g., hedge funds) often positively influences them to align their interests with the firm’s shareholders