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Compared to diversification that is grounded in

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53.Compared to diversification that is grounded in intangible resources,diversification based on financial resources only is more visible to competitorsand thus more imitable and less likely to create value on a long-term basis.a.Trueb.False
54.Research shows that increased firm size and greater levels of diversificationare correlated with increased executive compensation.
55.If managers diversify a firm in a way that does not produce value, the firmrisks capital market intervention.
56.Golden parachutes protect managers from the negative consequences ofover-diversifying a firm.
57.Without strict governance mechanisms, the majority of executives will act intheir own self-interest rather than acting as positive stewards of firmresources.a.Trueb.False
58.The use of poison pills increases the chance that a poorly performing firm willbe taken over.
59.Knowing that their firms could be acquired if they are not managedsuccessfully encourages executives to use value- creating diversificationstrategies.
60.Corporate-level strategy is concerned with ____ and how to manage thesebusinesses.
61.The ultimate test of the value of a corporate-level strategy is whether the:a.corporation earns a great deal of money.b.top management team is satisfied with the corporation's performance.c.businesses in the portfolio are worth more under the management ofthe company in question than they would be under any otherownership.d.businesses in the portfolio increase the firm's financial returns.

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