When the Top Management Team Is Homogeneous and a New

question 43

Multiple Choice

When the top management team is homogeneous and a new CEO is selected from inside the firm,it is:

• A) unlikely for the current strategy to change.
• B) likely that product innovation will continue.
• C) likely there will be a change in strategy.
• D) unlikely the new CEO will have a long tenure.

---

Definitions:

Dividends Received

Dividends Received refers to the payments a shareholder gets from a corporation or a fund as a return on investment.

Related Expense

An expense that is directly connected to a specific business activity or department within a company.

Equity in Subsidiary Earnings

The share of earnings attributed to the parent company from its ownership interest in a subsidiary.