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Firms' Innovative Behaviours Are Strongly Influenced by the Competencies of Their

Question 7

Multiple Choice

Firms' innovative behaviours are strongly influenced by the competencies of their managers and the ways in which their performance is judged and rewarded (and punished) . Methods of judgement and reward vary considerably amongst countries, according to their national systems of corporate governance: in other words, the systems for exercising and changing corporate ownership and control. Which of the following is not generally true?


A) In the Anglo-Saxon system corporate ownership (shareholders) is separated from corporate control (managers) .
B) In the Anglo-Saxon system investors are slow to deal with poor investment choices.
C) In the Nippon-Rhineland system a higher priority is given to investment than to returns to shareholders.
D) In the Nippon-Rhineland system banks, suppliers and customers are more heavily locked into the firms in which they invest.

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