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.

---

Definitions:

Resource Dependency

A theory that suggests organizations depend on resources in their environment to survive, which influences their behavior and strategies.

Environmental Uncertainty

The extent to which an organization lacks information about its external environment, making it difficult to predict future events or trends.

Environmental Impact

The effect or influence of human activities on the natural environment, including both negative and positive consequences.

External Environment

All outside factors and influences that impact the operation and performance of an organization, including economic, technological, sociocultural, and political factors.