All of the Following Are Correct About the Chapter 10

question 13

Multiple Choice

All of the following are correct about the Chapter 10 Strategic Focus about Rio Tinto EXCEPT:

• A) The firm's size and complexity have increased the difficulty of achieving effective corporate governance.
• B) Large-block stockholders exerted influence on both strategic and operating decisions at the company.
• C) Rio Tinto recognized by large-block shareholders for its effective use of CEO pay as a corporate governance mechanism.
• D) Rio Tinto has been criticized for having poor governance because it has given executives generous rewards for hitting unchallenging targets.

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Definitions:

Entry Barrier

Product or service feature that customers expect from organizations in a certain industry; an organization trying to enter this market must provide this product or service at a minimum to be able to compete.

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Buyer Power

The influence that customers have over a producing industry, often determining the market value and ensuring that services and products meet their needs.

Buyers

Individuals or entities that purchase goods or services for personal use or organizational needs.