Which of the Following Is NOT a Governance Mechanism That

question 11

Multiple Choice

Which of the following is NOT a governance mechanism that may limit managerial tendencies to over-diversify?

• A) the market for corporate control
• B) the Board of Directors
• C) surveillance technologies
• D) monitoring by owners

---

Definitions:

Foreign-Currency Exchange

The act of changing one country's currency into another country's currency for a variety of reasons, including commerce, trading, or tourism.

Trade Deficits

An economic condition wherein a country's imports of goods and services exceed its exports over a given time period.

Loanable Funds

The money available for borrowing in the economy’s financial markets, determined by the saving behavior of entities and the money creation of banks.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation, showing the real cost of funds to the borrower and the real yield to the lender.