Which of the Following Is NOT a Governance Mechanism That

question 31

Multiple Choice

Which of the following is NOT a governance mechanism that may limit managerial tendencies to over-diversify?

• A)the market for corporate control
• B)the Board of Directors
• C)surveillance technologies
• D)executive compensation practices

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, eroding the purchasing power of currency.

Discretionary Increase

A decision by policymakers to increase government spending or reduce taxes beyond automatic stabilizers, aiming to influence the economy's direction.

Aggregate Demand Curve

A curve depicting the total demand for all goods and services in an economy at different price levels, assuming other factors remain constant.

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.