Final answer:
The claim that the lack of monetary rewards discourages managers from strategic planning is false; multiple motivations exist for managers to plan strategically. Acquisition of land was a significant factor in early U.S. Indian policy. As a firm grows, investors rely less on personal knowledge of managers and more on widely available financial information.
Step-by-step explanation:
The statement that the lack of monetary rewards is one reason managers do not engage in strategic planning is false. Managers may have various motivations for engaging in strategic planning beyond immediate financial gains. For example, a businessman believes that he deserves a raise due to his hard work, which he sees as its own reward. Similarly, managers may engage in strategic planning with a long-term vision, understanding that the strategic positioning of the company can bring about substantial benefits to the organization and, by extension, to themselves, whether through company performance, job security, or career advancement.
Regarding the claim that the acquisition of land was the most important motivating factor in the formulation of early U.S. Indian policy, the complexity of historical motivations and factors suggests that this statement is True, as land was indeed a significant driving force in policies related to American Indians. However, there were also political, economic, and cultural factors at play.
Lastly, as a firm grows and information about its performance becomes more accessible, the personal knowledge of individual managers becomes less crucial for investors. Bondholders and shareholders may feel more comfortable investing in a firm when there is transparent data regarding its products, revenues, costs, and profits, as opposed to relying solely on personal relationships.