The M-Form Structure Is Designed to Create Checks and Balances

question 66

Multiple Choice

The M-form structure is designed to create checks and balances for managers that increase the probability that a diversified firm will be managed in ways consistent with

• A) the interests of all of its stakeholders.
• B) an exclusively short-term perspective.
• C) an exclusively long-term perspective.
• D) the interests of its equity holders.

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Definitions:

Appeasement Policy

A diplomatic strategy of making concessions to an aggressive power in order to avoid conflict, most notoriously associated with British policy toward Nazi Germany in the 1930s.

Austro-Hungarian Empire

A dual monarchy in Central Europe from 1867 to 1918, consisting of Austria and Hungary, known for its diverse population and significant role in World War I.

Nonaggression Pact

A bilateral agreement in which two countries agree not to attack or support an attack against each other.

Joseph Stalin

A Soviet political leader who served as the General Secretary of the Communist Party of the Soviet Union from 1922 until his death in 1953, known for his authoritarian rule.