Which of the Following Statements Is Least True Regarding the Accumulation

question 4

Multiple Choice

Which of the following statements is least true regarding the accumulation of power?

• A)The accumulation of power is helpful when there are high agency costs in coordinating among managers and lower-level workers
• B)The accumulation of power is helpful when the firm's environment is relatively stable
• C)The accumulation of power is harmful when there are high agency costs in coordinating among levels of upper management
• D)The accumulation of power is harmful when the firm's environment is relatively unstable
• E)The major purpose of corporate governance is not to reign in the accumulation of power by CEOs

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities with the vision and strategy of the organization, track performance against strategic goals, and improve internal and external communications.

Global Reporting Initiative

An international organization that helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues.

Strategic Performance Measurement System

A framework to track and evaluate an organization's performance against its long-term strategic goals.

Performance Measurement System

A performance measurement system is a set of metrics used to quantitatively gauge an organization's performance over time towards its goals.