Under the Shareholder Wealth Maximization Model (SWM) of Corporate Governance

question 68

Multiple Choice

Under the Shareholder Wealth Maximization Model (SWM) of corporate governance, poor firm performance is likely to be faced with all but which of the following?

• A) sale of shares by disgruntled current shareholders
• B) shareholder activism to attempt a change in current management
• C) as a maximum threat, initiation of a corporate takeover
• D) prison time for executive management

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Definitions:

Ricin

A highly toxic protein derived from the beans of the castor oil plant Ricinus communis, which can cause severe illness or death if ingested, inhaled, or injected.

Inactivate

The process of making something non-functional or unable to perform its normal function.

Ribosomes

Cell organelles composed of RNA and protein, where protein synthesis takes place.

Death

The permanent cessation of all biological functions that sustain a living organism, marking the end of its life.