Executives That Repeatedly Put Their Own Interests Before That of the Firm

question 51

Multiple Choice

Executives that repeatedly put their own interests before that of the firm may find that they have difficulty finding another job after their current one. This is an example of

• A) the managerial labor market disciplining managers.
• B) the market for corporate control.
• C) the board of directors affecting the prospects of a manager.
• D) none of the above.

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Definitions:

International Specialization

The practice of countries focusing on the production of goods and services for which they have a comparative advantage, leading to trade.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods and services that can be produced by an economy, given its available resources and technology.

Productive Efficiency

A situation in which an economy or production system cannot produce more of one good without reducing the output of another good, indicating optimal production resource usage.

Capital Goods

Assets owned by companies for an extended period, instrumental in manufacturing products and providing services, including items like equipment, machinery, and buildings.