Some MNEs That Have Tried Contemporary Structures Have Run into Problems

question 70

Multiple Choice

Some MNEs that have tried contemporary structures have run into problems, most notably ________.

• A)frequent managerial intervention in decision making
• B)relentless centralization of decision making
• C)employees too motivated by bonuses
• D)resource competition

---

Definitions:

Green Shoe Provision

An option in an IPO that allows underwriters to buy up to an additional 15% of company shares at the offering price to manage demand and stabilize the stock price after the IPO.

Quiet Period

A time frame in which companies are restricted from making certain announcements to prevent affecting their stock price before a securities offering.

Lockup Agreement

A contract stating that shareholders of a newly issued stock agree not to sell their shares for a certain period following an initial public offering.

Initial Public Offering (IPO)

The first sale of stock by a company to the public, marking a transition from a private to a publicly traded company.