When Corporate CEOs and Top Managers Use Their Power and Control

question 9

Multiple Choice

When corporate CEOs and top managers use their power and control over funds to satisfy their personal desires for wealth or status, it is called:

• A) on-the-job consumption.
• B) greenmail.
• C) information asymmetry.
• D) self-dealing.
• E) risk capital.

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Definitions:

Span Of Control

The number of subordinates or employees that a manager or supervisor can effectively manage, oversee, or control directly.

Supervisor

An individual who oversees and guides the work of others, ensuring that tasks are completed effectively and efficiently.

Hierarchy

An arrangement or institution where individuals or entities are positioned in a hierarchy based on their authority or status.

Centralized

A decision-making framework in organizations where authority and responsibility are concentrated at a single point or within a small group, typically within the upper levels of management.