A Takeover Constraint

question 19

Multiple Choice

A takeover constraint

• A) uses the threat of a takeover to cause the CEO to fear the loss of his or her job.
• B) prevents a company from being taken over.
• C) limits the extent to which managers can pursue strategies that are inconsistent with shareholder interest.
• D) is reduced by corporate raiders.
• E) is greatest when a company's stock price is significantly higher than book value.

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Definitions:

Matrix Structure

An organizational design that combines two or more types of structures, typically functional and product-based, to leverage the advantages of both.

Functional Manager

is a manager who has authority over a specific department or unit within an organization, specializing in a particular function such as marketing or finance.

Product Manager

A role responsible for the strategy, roadmap, and feature definition for a product or product line, often acting as a liaison between various teams.

Coordination

The management of interdependencies between activities, tasks, and functions to achieve a harmonious operation and aligned efforts towards common goals.