Acquisitions are a means of extending the company’s product line and increasing revenues. The capital market values growth. Therefore, some firms make acquisitions to improve their standing in the capital markets

Corporate governance mechanisms are designed to ensure that top-level managers make strategic decisions that best serve the interests of all stakeholders

Which of the following organizational structures will emphasize financial controls for headquarters’ evaluation of operating units while the operating units will emphasize strategic controls within their units’ performance?

__________ capital increases cooperation among individuals inside and outside the firm.

Because of recent ineffective performance, boards of directors are experiencing increasing pressure from shareholders, lawmakers, and regulators to be more forceful in preventing managers from acting in their own interest

Research suggests that institutional activism may not have a strong direct effect on firm performance, but it may indirectly influence a targeted firm’s strategic decisions, including those concerned with social issues

According to Michael Dell, an overemphasis on financial controls to produce attractive short-term results contributed to performance difficulties at Dell, Inc. This point emphasizes the importance of properly balancing the use of strategic and financial controls

Autonomous strategic behavior results in internal innovations that are highly consistent with the firm’s current strategy

The market for corporate control may not be as efficient as a governance device as theory suggests because takeover targets are not always low performers with weak governance

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop