The M-form structure is designed to create checks and balances for managers that increase the probability that a diversified firm will be managed in ways consistent with
A) the interests of all of its stakeholders.
B) an exclusively short-term perspective.
C) an exclusively long-term perspective.
D) the interests of its equity holders.

Question

Quizplus · Accepted Answer

The M-form structure is designed to create checks and balances for managers to ensure that the diversified firm is managed in ways consistent with the interests of its equity holders. Therefore, the best choice is D.

The M-Form Structure Is Designed to Create Checks and Balances