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Which One of the Following Statements as to the Theoretical

Question 1

Multiple Choice

Which one of the following statements as to the theoretical impact of competition on managerial performance and firm value is true?


A) Competition always increases managerial performance.
B) Competition may reduce as well as increase managers' incentives to work hard.
C) The positive income effect dominates only under certain, specific conditions.
D) Both B and C are correct.

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