As Mergers, Acquisitions, and Restructuring Have Increased in Importance, Agency

question 72

Multiple Choice

As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether

• A) a stock repurchase should be undertaken.
• B) shareholder goals are truly being achieved by managers in the long run.
• C) managers are actually agents or only employees of the firm.
• D) managers are owners of the company and act the same with the same interests.

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Definitions:

Followership Process

The act of being led by others in a group or organization, emphasizing the active role of followers in supporting and realizing leadership objectives.

Theoretical Framework

An established logical structure that guides research, analysis, and understanding within academic studies, providing a context for evaluating and interpreting findings.

Effective Followers

Individuals who actively support and contribute to their leaders' vision while demonstrating critical thinking and initiative.

Relative Powerlessness

A perception or state where individuals or groups feel they lack control or influence over situations or outcomes.