Which of the Following Is Not a Benefit of Strategic

question 9

Multiple Choice

Which of the following is not a benefit of strategic control systems?

• A) They help managers obtain superior organizational structure.
• B) They help managers establish ambitious goals and targets.
• C) They help managers develop performance measures.
• D) They help managers excel in their quest to raise performance.
• E) They help managers stay focused on important problems confronting the organization.

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Definitions:

Dividend Policy

A company's approach to distributing profits back to its shareholders, whether through cash dividends or share repurchases.

Dividend Irrelevance Theory

A theory suggesting that the dividend policy of a company is irrelevant to its value or the cost of capital and investment decisions.

"Bird in the Hand" Theory

The investment theory suggesting that investors prefer the certainty of dividend payments over potential capital gains because of the perceived lower risk.

Clientele Effect

The theory that firms attract equity investors at least in part because of their dividend-paying policies. The firm has a “clientele” of stockholders whose need for current or deferred income matches the firm’s dividend practices. The implication is that it isn’t a good idea to change dividend policies because such a change is bound to displease most stockholders.