Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A) One disadvantage of using leverage is that it does not allow the original owners of the firm to maintain their equity stake.
• B) The separation of ownership and control creates the possibility of management entrenchment; facing little threat of being fired and replaced, managers are free to run the firm in their own best interests.
• C) Managers also have their own personal interests, which may differ from those of both equity holders and debt holders.
• D) The costs of reduced effort and excessive spending on perks are another form of agency cost.

Understand the importance of strategic leadership in maintaining a sense of urgency for achieving organizational objectives.

Grasp the concepts of competing based on price or product and the exclusivity of these strategies within market competition.

Identify and avoid common pitfalls in strategic planning processes, including failures of process and substance.

Define and explain the concept of sustainable competitive advantage and its significance in strategic management.

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Definitions:

Humans Focusing

This is not a standard psychological term and may refer to the human tendency to concentrate or pay attention to certain stimuli over others. NO.

Specific Responses

Particular reactions to stimuli, often as a result of learning or conditioning.

Innate Drives

Fundamental biological instincts and impulses that drive behavior, such as hunger, thirst, and the need for sleep.

Reinforcement

The process by which a stimulus or an event (a reinforcer) following a particular behavior increases the probability that the behavior will happen again.