Three Decades of Privatization Suggest All of the Following Except

question 30

Short Answer

Three decades of privatization suggest all of the following except:
a. Privatization to insiders helps improve the performance of small firms.
b. In large corporations privatization to insiders, without external governance pressures, is hardly conducive for needed restructuring.
c. Outside ownership and control, preferably by blockholders, funds, foreigners, and/ or banks, are more likely to facilitate restructuring.
d. Such outside ownership and control does not happen frequently because incumbent managers do not necessarily welcome such outside "intrusion."
e. When outside investors such as institutional investors do come in, they fail to assert their power.

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Definitions:

Objective and Task

A marketing budgeting method where specific objectives set the tasks and activities to achieve them, determining the required budget.

Competitive Parity

A strategy where a company sets its prices or budgets equivalent to its competitors to avoid price wars and stabilize market share.

Percentage of Sales

A financial metric that compares a particular figure or expense to the total sales of a company, typically used to assess the financial health or efficiency of business operations.

All You Can Afford

This is a budgeting approach where advertising spending is based on the amount of funds a company has available, rather than being tied to specific performance objectives.