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Unformatted text preview: / 1 MBA 565 23 / 1 Examples of values Departure from mission, vision, or values BP
i.e. Separation of the ownership from management creates the
potential for the wishes of owners to be ignored
1 2 24 / 1 Strategy-making, strategy-execution process Source: Thompson, Strickland, and Gamble, 2010; 17th edition MBA 565 27 / 1 Moral hazard
Occurs because owners have limited access to company
information, allowing executives to pursue their own interests 3 MBA 565 Agency costs
The cost of agency problems and the cost of actions to
minimize them Adverse selection
Occurs because of the limited ability of stockholders to
precisely determine the competencies and priorities of
executives at the time they are hired MBA 565 25 / 1...
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This note was uploaded on 02/04/2014 for the course MATH 108 taught by Professor Jamesbaglama during the Spring '13 term at Rhode Island.
- Spring '13