Which of the Following Is an Implication for the Strategist

question 46

Multiple Choice

Which of the following is an implication for the strategist in the context of corporate governance and a company's success?

• A) Very few and specific corporate-governance mechanisms can be effective in addressing the principal-agent problem.
• B) Effective corporate governance and solid business ethics are critical to gaining and sustaining competitive advantage.
• C) Leading by ethical example often has a less strong effect on employee behavior than words.
• D) A firm that restricts its responsiveness to stockholders (and no other stakeholders) and keeps them committed to its vision will be successful.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government.

Market for Apartments

The economic interaction of supply and demand determining the rental prices and availability of apartment units.