Of the Value-Neutral Incentives to Diversify, All of the Following

question 85

Multiple Choice

Of the value-neutral incentives to diversify, all of the following are internal firm incentives EXCEPT:

• A) overall firm risk reduction.
• B) uncertain future cash flows.
• C) stricter interpretation of antitrust laws.
• D) low performance.

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Definitions:

Management By Exception

A management strategy where leaders only intervene when performance deviates from standards, allowing employees to work autonomously otherwise.

Charismatic Leaders

Individuals who possess a magnetic personality and the ability to inspire and motivate others through their vision, communication skills, and personal charisma.

Self-esteem Followers

Individuals who follow others based on a need for approval and validation to boost their own self-esteem.

LMX

Leader-Member Exchange, a theory that focuses on the relationships between leaders and individual team members.