China Innovation Inc

question 26

Multiple Choice

China Innovation Inc. is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. Which is most likely to be a characteristic of this company?

• A) The conflict between management and labor will be high.
• B) The company's management will expect blind loyalty from the workers.
• C) It will often indulge in violations of business agreements.
• D) The cost of doing business will be low for those companies that enter into a business with it.
• E) It will not have any relationship networks supported by reciprocal obligations.

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Definitions:

Proxy Fight

A battle for control of a company waged by a group of shareholders against the current management, typically requiring the solicitation of proxies from other shareholders.

Board Members

Individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Shareholders

Individuals or institutions that own one or more shares of stock in a public company, thereby having a partial ownership stake in the company.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.