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:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, control, and rules, often at the expense of flexibility and efficiency.

Psychotherapy

A form of treatment for mental health problems that involves talking with a psychiatrist, psychologist, or other mental health provider.

Exposure and Response Prevention

A behavioral therapy technique treating anxiety disorders and OCD, focusing on facing fears and refraining from compulsive behaviors in response.

SSRI Medication

A type of antidepressant medication that works by increasing the levels of serotonin in the brain, used to treat depression and anxiety disorders.