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

The integrated cost leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semispecialized, and rules and procedures that call for some formal and some informal job behavior

The separation of the positions of CEO and chairperson of the board of directors reduces the power of the CEO over firm governance practices

Entrepreneurship is the economic engine driving many nations’ economies in the global competitive landscape

A firm pursuing an unrelated diversification strategy will most likely utilize a __________ structure.

James Abercrombie has a thriving consulting firm specializing in training boards of directors in decision-making skills. Mr. Abercrombie has had striking success in reducing conflict and hostility among directors and allowing boards to develop more cohesiveness. Mr. Abercrombie is considering expanding his consulting practice overseas. Which of the following statements is most likely to be true?

LG Company has units operating in significantly different industries and uses financial controls to manage its portfolio. LG is MOST likely using the __________ structure.

In general, when governance mechanisms are strong, managers have free rein in their decisions