An External Governance Threat Will Restrain the Behavior of Managers

question 89

True/False

An external governance threat will restrain the behavior of managers and thus provides a sure means of controlling managerial motives for diversification.

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Definitions:

Coercive Power

A form of power that relies on the ability to punish or deliver negative consequences to influence others' actions.

Workgroup Ineffectiveness

A situation where a group fails to achieve its goals or perform its functions efficiently due to various factors.

Ineffective

Refers to the inability to achieve intended results or to perform tasks and processes successfully.

Coercive Power

A form of authority that relies on the threat of force or sanctions to influence others' behavior and compliance.