Final answer:
It is false to claim that only senior managers in large corporations make strategic choices, as employees in smaller firms often participate in the strategic management process. The spread of information about a firm's performance allows for wider involvement in strategic decisions and affects external investment willingness.
Step-by-step explanation:
The statement that strategic choices are generally limited to very experienced senior managers in large corporations is false. In smaller and entrepreneurial firms, it is quite common for a broader range of employees to be involved in the strategic management process.
As a firm grows and the knowledge of its managers' plans becomes less vital due to more widely available information on the company's performance, outside investors such as bondholders and shareholders become more willing to provide capital, even without the personal knowledge of the managers. This democratization of information extends to strategic decision-making as well. Moreover, while the board of directors is supposed to represent shareholder interests, executives often have significant influence over the selection of board members, which can affect strategic direction.