Corporate Management Can Enhance the Performance of Its Individual Businesses

question 20

Multiple Choice

Corporate management can enhance the performance of its individual businesses through imposing corporate systems for performance management and resource allocation,however,the main downside of such corporate intervention is:

• A)Constraining innovation
• B)Undermining autonomy and motivation of business-level managers
• C)Limiting opportunities for exploiting synergies between businesses
• D)Requiring an excessive focus on shareholder interests over the interests of other stakeholders

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Definitions:

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, potentially leading to an imbalance in the transaction.

Market Transaction

An exchange of goods, services, or financial assets in return for money between parties within a marketplace.

Emission Control Devices

Technologies or equipment installed on vehicles or industrial plants to reduce pollutants released into the atmosphere.