Upgrade to remove ads
MNGT Chapter 12
Terms in this set (11)
shared value creation framework
A model proposing that managers have a dual focus on shareholder value creation and value creation for society.
A system of mechanisms to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally.
theory that views firm as nexus of legal contracts
A situation that occurs when information asymmetry increases the likelihood of selecting inferior alternatives.
A situation in which information asymmetry increases the incentive of one party to take undue risks or shirk other responsibilities because the costs incur to the other party.
Board of directors
The centerpiece of corporate governance, composed of inside and outside directors who are elected by the shareholders.
Board members who are generally part of the company's senior management team; appointed by shareholders to provide the board with necessary information pertaining to the company's internal workings and performance.
Board members who are not employees of the firm, but who are frequently senior executives from other firms or full- time professionals. Given their independence, they are more likely to watch out for shareholder interests.
incentive mechanism to align the interests of shareholders and managers, by giving the recipient the right to buy a company's stock at a predetermined price sometime in the future.
leveraged buyout (LBO)
A single investor or group of investors buys, with the help of borrowed money ( leveraged against the company's assets), the outstanding shares of a publicly traded company in order to take it private; the private owners often will restructure the company and eventually take it public again.
agreed upon code of conduct in business based on societal norms
THIS SET IS OFTEN IN FOLDERS WITH...
Strategic Management Chapter 1
Chapter 2 Managing the strategy process
Chapter 3 external analysis
Chapter 4 internal analysis
YOU MIGHT ALSO LIKE...
BUSA 4900 Chapter 12
Business Policy Chapter 12
MGT 3830 Chapter 12
OTHER SETS BY THIS CREATOR
MNGT Chapter 11
MNGT Chapter 10
MNGT Chapter 9
Chapter 8 MNGT