- For businesses facing complex and turbulent business
environments, which of the following is true?
- Goals and objectives that are uncertain prevent opportunism
- Traditional strategic controls are usually inappropriate
- Complacency about predetermined milestones can prevent adaptability
- Detail plans are needed to maintain order
- The primary participants in corporate governance do
not include the
- Financial institutions
- Management (led by the chief executive officer)
- Board of directors
1. b. Traditional strategic controls are usually inappropriate
As firms have to deal with an increasingly complex and unpredictable business environment, there is a need for increased coordination across organizational barriers. Therefore, a control system based primarily on rigid strategies, rules, and regulations is dysfunctional
2. b. Financial institutions
The financial institutions are important from a business perspective although they are not part of corporate governance.