Question 1

Corporate citizenship is often associated with ________ responsibility.

Accepted Answer

A)   Legal
B)   Ethical
C)   Philanthropic
D)   EconomicE) A) and B)
F) None of the above

Question 2

What is corporate governance?

Accepted Answer

Corporate governance is the system by which organizations are directed and controlled by their owners.It is the means and mechanisms used to ensure that managers act in accordance with investors' best interests.Corporate governance addresses the distribution of rights and responsibilities among different participants in the organizations-such as the board,managers,shareholders,and other stakeholders-and spells out the rules and procedures for making decisions about corporate affairs.By doing so,governance also provides the structure through which the company's objectives are set and the means of attaining those objectives and monitoring performance.
Explanation: This is the explanation of corporate governance.

Question 3

________________ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals.

Accepted Answer

A)   Corporate social responsibility
B)   Stakeholder impact analysis
C)   Corporate governance
D)   Principal-agent theoryE) A) and C)
F) None of the above C

Question 4

Managers must ensure that their firms obey all the laws,including labor,consumer,and environmental laws.This is a firm's __________ responsibility.

Accepted Answer

A)   Legal
B)   Ethical
C)   Social
D)   EconomicE) None of the above
F) B) and C)

Question 5

Executive compensation is an important element of corporate governance.Research has found that the rate of executive pay to average employee pay has been relatively stable over the last couple of decades.

Accepted Answer

A) True 
 B)False

Question 6

A group of individuals that formally represent the firm's shareholders and oversee the work of executives are referred to as __________.

Accepted Answer

A)   Agents
B)   The board of directors
C)   Managers
D)   Governing boardsE) A) and B)
F) B) and C)

Question 7

Former CEO of HP,Mark Hurd,resigned his job due to his unethical behavior.

Accepted Answer

A) True 
 B)False

Question 8

Effective management of the stakeholders can lead to greater organizational flexibility and __________.

Accepted Answer

A)   Credibility
B)   Core competence
C)   Adaptability
D)   Product qualityE) A) and B)
F) B) and C)

Question 9

What best describes transferability of investor interests?

Accepted Answer

A)   Investors can give company stocks as a gift.
B)   Investors are allowed to trade stocks.
C)   Investors are allowed to participate in strategy formulation.
D)   Investors can be hired as employees.E) B) and D)
F) B) and C)

Question 10

_________ describes a situation in which an agent misrepresents his or her ability to do a job.

Accepted Answer

A)   A moral hazard
B)   An adverse selection
C)   Stakeholder theory
D)   An agency problemE) None of the above
F) B) and C)

Question 11

According to the opening case,why did Mark Hurd resign?

Accepted Answer

A)   Because of his incompetence in leading the company to achieve its goal
B)   Because of his unethical behavior
C)   Because of political wrestling among board members
D)   None of theseE) All of the above
F) A) and B) B

Question 12

The pyramid of corporate social responsibility (CSR),shown in Exhibit 12.4,symbolizes that the firm needs to fulfill its responsibilities in a step-by-step sequential fashion.

Accepted Answer

A) True 
 B)False

Question 13

By November 2008,the Dow Jones Industrial Average lost 50 percent of its value because of which of the following?

Accepted Answer

A)   The subprime mortgage bubble burst.
B)   Several Ponzi Schemes were discovered.
C)   The unethical behavior of some CEOs.
D)   All of these.E) B) and D)
F) All of the above

Question 14

All of the following are examples of a leader's interpersonal roles EXCEPT ________.

Accepted Answer

A)   Liaison
B)   Monitor
C)   Leader
D)   FigureheadE) A) and B)
F) A) and D)

Question 15

The most common executive compensation is _______.

Accepted Answer

A)   Stock options
B)   Commission
C)   Health benefits
D)   Straight salaryE) None of the above
F) B) and D)

Question 16

A firm's legal responsibilities are often defined only minimum standards.Firms often go beyond minimum legal responsibilities by being ________ responsible to society.

Accepted Answer

A)   Legally
B)   Economically
C)   Philanthropically
D)   EthicallyE) None of the above
F) B) and D)

Question 17

Which of the following is NOT true concerning the relationship between corporate governance and strategy?

Accepted Answer

A)   Corporate governance provides control mechanisms.
B)   Boards ensure that a firm's mission is in its strategy.
C)   Governance monitors the way the strategy is executed.
D)   Boards make day-to-day decisions on strategy execution.E) A) and B)
F) B) and C)

Question 18

The combination of ownership and control is one attractive characteristic of a public company.

Accepted Answer

A) True 
 B)False

Question 19

The MBA Oath first developed at Harvard and now signed by students at over 500 business schools is modeled after what?

Accepted Answer

A)   The Hippocratic oath in medicine
B)   The Sarbanes-Oxley pledge
C)   Level-5 leadership
D)   None of these; it's entirely unique.E) A) and B)
F) A) and C)

Question 20

Which of the following statements about stakeholders is correct?

Accepted Answer

A)   Failure to consider stakeholders can damage the company's performance.
B)   Stakeholders is just another name for shareholders.
C)   Stakeholders are less important than shareholders.
D)   Stakeholders are the members in a company's supply chain.E) A) and D)
F) All of the above

Exam 12: Corporate Governance, Business Ethics, and Strategic Leadership

Corporate citizenship is often associated with ________ responsibility.

Correct Answer
verified

What is corporate governance?

________________ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals.

Correct Answer
verified
C

Managers must ensure that their firms obey all the laws,including labor,consumer,and environmental laws.This is a firm's __________ responsibility.

Correct Answer
verified

Executive compensation is an important element of corporate governance.Research has found that the rate of executive pay to average employee pay has been relatively stable over the last couple of decades.

Correct Answer
verified

A group of individuals that formally represent the firm's shareholders and oversee the work of executives are referred to as __________.

Correct Answer
verified

Former CEO of HP,Mark Hurd,resigned his job due to his unethical behavior.

Correct Answer
verified

Effective management of the stakeholders can lead to greater organizational flexibility and __________.

Correct Answer
verified

What best describes transferability of investor interests?

Correct Answer
verified

_________ describes a situation in which an agent misrepresents his or her ability to do a job.

Correct Answer
verified

According to the opening case,why did Mark Hurd resign?

Correct Answer
verified
B

The pyramid of corporate social responsibility (CSR),shown in Exhibit 12.4,symbolizes that the firm needs to fulfill its responsibilities in a step-by-step sequential fashion.

Correct Answer
verified

By November 2008,the Dow Jones Industrial Average lost 50 percent of its value because of which of the following?

Correct Answer
verified

All of the following are examples of a leader's interpersonal roles EXCEPT ________.

Correct Answer
verified

The most common executive compensation is _______.

Correct Answer
verified

A firm's legal responsibilities are often defined only minimum standards.Firms often go beyond minimum legal responsibilities by being ________ responsible to society.

Correct Answer
verified

Which of the following is NOT true concerning the relationship between corporate governance and strategy?

Correct Answer
verified

The combination of ownership and control is one attractive characteristic of a public company.

Correct Answer
verified

The MBA Oath first developed at Harvard and now signed by students at over 500 business schools is modeled after what?

Correct Answer
verified

Which of the following statements about stakeholders is correct?

Correct Answer
verified

Exam 12: Corporate Governance, Business Ethics, and Strategic Leadership

Corporate citizenship is often associated with ________ responsibility.

Correct AnswerverifiedShow Answer

What is corporate governance?

________________ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals.

Correct AnswerverifiedC

Managers must ensure that their firms obey all the laws,including labor,consumer,and environmental laws.This is a firm's __________ responsibility.

Correct AnswerverifiedShow Answer

Executive compensation is an important element of corporate governance.Research has found that the rate of executive pay to average employee pay has been relatively stable over the last couple of decades.

Correct AnswerverifiedShow Answer

A group of individuals that formally represent the firm's shareholders and oversee the work of executives are referred to as __________.

Correct AnswerverifiedShow Answer

Former CEO of HP,Mark Hurd,resigned his job due to his unethical behavior.

Correct AnswerverifiedShow Answer

Effective management of the stakeholders can lead to greater organizational flexibility and __________.

Correct AnswerverifiedShow Answer

What best describes transferability of investor interests?

Correct AnswerverifiedShow Answer

_________ describes a situation in which an agent misrepresents his or her ability to do a job.

Correct AnswerverifiedShow Answer

According to the opening case,why did Mark Hurd resign?

Correct AnswerverifiedB

The pyramid of corporate social responsibility (CSR),shown in Exhibit 12.4,symbolizes that the firm needs to fulfill its responsibilities in a step-by-step sequential fashion.

Correct AnswerverifiedShow Answer

By November 2008,the Dow Jones Industrial Average lost 50 percent of its value because of which of the following?

Correct AnswerverifiedShow Answer

All of the following are examples of a leader's interpersonal roles EXCEPT ________.

Correct AnswerverifiedShow Answer

The most common executive compensation is _______.

Correct AnswerverifiedShow Answer

A firm's legal responsibilities are often defined only minimum standards.Firms often go beyond minimum legal responsibilities by being ________ responsible to society.

Correct AnswerverifiedShow Answer

Which of the following is NOT true concerning the relationship between corporate governance and strategy?

Correct AnswerverifiedShow Answer

The combination of ownership and control is one attractive characteristic of a public company.

Correct AnswerverifiedShow Answer

The MBA Oath first developed at Harvard and now signed by students at over 500 business schools is modeled after what?

Correct AnswerverifiedShow Answer

Which of the following statements about stakeholders is correct?

Correct AnswerverifiedShow Answer

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C

Correct Answer
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B

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