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

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.