sheet. One point each. TRUE/FALSE. Write T' if the statement is true and 'F' if the statement is false. 1) Only shareholders in a publicly held company are stakeholders because they are the only group that has a stake in the success of the organization. 1) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 2) A firm that takes on too much long-term debt to finance operations will see an 2) immediate impact on its indicators of financial leverage. A) comparable B) short-term C) long-term D) relative 3) A CEO made a lot of mistakes in assessing the market and the competitive conditions 3) and improperly redesigning the organization into numerous business units. Such errors led to significant performance declines. According to the text, this example illustrates the perspective of leadership. A) external control B) romantic C) internal mechanism D) operational 4) Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform A) higher than firms that achieve either a cost or a differentiation advantage. B) about the same as firms that are stuck-in-the-middle. C) lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages. D) at about the same level as firms that achieve either cost or differentiation advantages