1. Which of the following benefits derived from diversification of a firm's product line benefit the decision-making specialists but not the risk-bearing specialists? Group of answer choices

It reduces managerial employment risk

It can potentially increase a firm's returns

It enhances a firm's strategic competitiveness

It leads to better implementation of corporate governance policies

2. The phrase "Incentives are not aligned" means: Group of answer choices

The rules and compensation in a firm encourage behavior contrary to what the firm is trying to achieve

Managers rely too heavily on decision-making heuristics

Ownership and management of the firm are separate (i.e., the owner does not manage the firm)

The strategy of the acquiring and target firms in an acquisition are completely different

3. Which type of directors is most likely to represent shareholder interests? Group of answer choices

Outside directors

Inside directors

Strategic directors

Related outside directors

4. Simply asking executives to be ethical leaders can reduce the rate of executive malfeasance. Group of answer choices

True

False

5. Firms participate in strategic alliances for all the following reasons EXCEPT to: Group of answer choices

Create value that they could not develop by acting independently

Enter competitive markets more quickly

Gain access to resources

Retain tight control over intangible core competencies

None of these