Question 1

The corporate system as a whole rarely addresses the idea of social legitimacy.

Accepted Answer

A) True 
 B)False

Question 2

One of the main ways in which shareholder activists communicate their concerns to management is through

Accepted Answer

A) the Internet. 
B) blogging. 
C) advertisements in mass media outlets. 
D) shareholder resolutions. 
A) the Internet. 
B) blogging. 
C) advertisements in mass media outlets. 
D) shareholder resolutions.

Question 3

The method by which a finn is being governed,directed,administered,or controlled is

Accepted Answer

A) corporate governance. 
B) management. 
C) management by objectives. 
D) management by decree. 
A) corporate governance. 
B) management. 
C) management by objectives. 
D) management by decree.

Question 4

The major condition of modern corporations that contributes to the corporate governance problem is the separation of ownership from control.

Accepted Answer

A) True 
 B)False

Question 5

Summarize the responsibilities that corporations should have toward their shareholders.

Accepted Answer

Managers should be candid in their publi

Question 6

Shareholder activism

Accepted Answer

A) was started by the counter culture during the 1960s. 
B) has been around for more than sixty years. 
C) is lead by the Roman Catholic church. 
D) relies on large institutional investors to introduce most of the shareholder resolutions. 
A) was started by the counter culture during the 1960s. 
B) has been around for more than sixty years. 
C) is lead by the Roman Catholic church. 
D) relies on large institutional investors to introduce most of the shareholder resolutions.

Question 7

Boards are now being tougher on CEOs for all of the following reasons except

Accepted Answer

A) increasing diversity on boards. 
B) competitive economic conditions. 
C) rising vigilance of outside directors. 
D) increasing power oflarge institutional investors. 
A) increasing diversity on boards. 
B) competitive economic conditions. 
C) rising vigilance of outside directors. 
D) increasing power oflarge institutional investors.

Question 8

Which of the following is a step to board repair?

Accepted Answer

A) Seeking outside help in identifying potential risks 
B) Increasing executive compensation 
C) Using dependent compensation consultants 
D) Reducing involvement in corporate strategy 
A) Seeking outside help in identifying potential risks 
B) Increasing executive compensation 
C) Using dependent compensation consultants 
D) Reducing involvement in corporate strategy

Question 9

A contract in which a corporation agrees to make payments to key officers in the event of a change in the control of the corporation is called

Accepted Answer

A) a golden parachute. 
B) golden handcuffs. 
C) greenmail. 
D) the silver rule. 
A) a golden parachute. 
B) golden handcuffs. 
C) greenmail. 
D) the silver rule.

Question 10

Because of its theoretical role of authority over the CEO,it has always been the board's responsibility to get tough with the senior manager when needed.

Accepted Answer

A) True 
 B)False

Question 11

Church groups are key members in the shareholder activist movement.One way that they gain access to corporate executives is by purchasing a small amount of stock and holding it a certain length of time (state laws usually dictate how much they need to buy and how long they need to hold it),which then allows them to introduce shareholder resolutions at stockholder meetings.Should small investors be able to wield influence like this,which arguably goes
beyond their fmancial stake in the finn?

Accepted Answer

The CBS show 60 Minutes did a segment on

Question 12

Directors who have some sort of ties to the firm are termed

Accepted Answer

A) dependent directors. 
B) independent directors. 
C) inside directors. 
D) outside directors. 
A) dependent directors. 
B) independent directors. 
C) inside directors. 
D) outside directors.

Question 13

Compensation recovery mechanisms that enable a company to recoup compensation funds is called .

Accepted Answer

A) proxy process. 
B) risk arbitrage. 
C) golden parachutes. 
D) clawback provisions. 
A) proxy process. 
B) risk arbitrage. 
C) golden parachutes. 
D) clawback provisions.

Question 14

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Accepted Answer

A) True 
 B)False

Question 15

Wages have grown faster than CEO salaries over the past decade.

Accepted Answer

A) True 
 B)False

Question 16

Practically speaking the corporate CEO often does the work the nominating committee should do.

Accepted Answer

A) True 
 B)False

Question 17

The board committee that is responsible for responding to social issues is the

Accepted Answer

A) ethics committee. 
B) public policy committee. 
C) community interface committee. 
D) rapid response committee. 
A) ethics committee. 
B) public policy committee. 
C) community interface committee. 
D) rapid response committee.

Question 18

A major criticism of CEOs and boards during the 1980s,when corporate takeovers were regular occurrences,was

Accepted Answer

A) not trying to get the best price they could for shareholders. 
B) focusing on "making deals" instead of running the business. 
C) trying to run up the price of their company's stock in preparation for the sale. 
D) being obsessed with self-preservation instead of making optimal decisions on behalf of shareholders. 
A) not trying to get the best price they could for shareholders. 
B) focusing on "making deals" instead of running the business. 
C) trying to run up the price of their company's stock in preparation for the sale. 
D) being obsessed with self-preservation instead of making optimal decisions on behalf of shareholders.

Question 19

The dynamic process by which business seeks to perpetuate its acceptance is called

Accepted Answer

A) advertising. 
B) marketing. 
C) legitimation. 
D) embedding. 
A) advertising. 
B) marketing. 
C) legitimation. 
D) embedding.

Question 20

The principal responsibilities of the audit committee are to

Accepted Answer

A) interview auditing fmns to do the company audit. 
B) negotiate with the Internal Revenue Service in the event of a tax audit. 
C) ensure that published fmancial statements are not misleading. 
D) hire the Chief Financial Officer (CFO)and monitor that person's work. 
A) interview auditing fmns to do the company audit. 
B) negotiate with the Internal Revenue Service in the event of a tax audit. 
C) ensure that published fmancial statements are not misleading. 
D) hire the Chief Financial Officer (CFO)and monitor that person's work.

The corporate system as a whole rarely addresses the idea of social legitimacy.

One of the main ways in which shareholder activists communicate their concerns to management is through

The method by which a finn is being governed,directed,administered,or controlled is

The major condition of modern corporations that contributes to the corporate governance problem is the separation of ownership from control.

Summarize the responsibilities that corporations should have toward their shareholders.

Shareholder activism

Boards are now being tougher on CEOs for all of the following reasons except

Which of the following is a step to board repair?

A contract in which a corporation agrees to make payments to key officers in the event of a change in the control of the corporation is called

Because of its theoretical role of authority over the CEO,it has always been the board's responsibility to get tough with the senior manager when needed.

Directors who have some sort of ties to the firm are termed

Compensation recovery mechanisms that enable a company to recoup compensation funds is called .

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Wages have grown faster than CEO salaries over the past decade.

Practically speaking the corporate CEO often does the work the nominating committee should do.

The board committee that is responsible for responding to social issues is the

A major criticism of CEOs and boards during the 1980s,when corporate takeovers were regular occurrences,was

The dynamic process by which business seeks to perpetuate its acceptance is called

The principal responsibilities of the audit committee are to

The Business and Society Relationship

Orporate Citi7cnship: Social Responsibility Ferformancc, Sustolinability

The Stoikt:holdc:r Approach to Businssotit:l, and Elhics

Strategic F Anagen1ent and Corpor3te Public Policy

Lss-Ue, Risk, and Crisis Tanage1ucnt

Busi Ness Ethics Fundamentals

Personal Aud Organizational Ethics

Business Ethics and Technology

Ethical Issues in the Global Arena

Business, Go,crnmcnl, and Rcgulation

Business Influence on Gocrnment and Public Policy

Consun1er Stakeholders:information Issues and Responses

Consu1ner Stakeholders:product and Service Lssues

Sustolinability and the Naturnl Enironmenl

Buiiinc11s Iand Community Stakcholdn1

Employee Stolkeholders and Vorkplace Jssud

Employtt Stnkcholdcr11: Privacy, Safcty, and Tlcalth

E1nploy 1ncnt Discrhnination and Affir1native Action

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Exam 4: Corporate Governance: Founda Tion31 Luet

The corporate system as a whole rarely addresses the idea of social legitimacy.

One of the main ways in which shareholder activists communicate their concerns to management is through

The method by which a finn is being governed,directed,administered,or controlled is

The major condition of modern corporations that contributes to the corporate governance problem is the separation of ownership from control.

Summarize the responsibilities that corporations should have toward their shareholders.

Shareholder activism

Boards are now being tougher on CEOs for all of the following reasons except

Which of the following is a step to board repair?

A contract in which a corporation agrees to make payments to key officers in the event of a change in the control of the corporation is called

Because of its theoretical role of authority over the CEO,it has always been the board's responsibility to get tough with the senior manager when needed.

Directors who have some sort of ties to the firm are termed

Compensation recovery mechanisms that enable a company to recoup compensation funds is called .

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Wages have grown faster than CEO salaries over the past decade.

Practically speaking the corporate CEO often does the work the nominating committee should do.

The board committee that is responsible for responding to social issues is the

A major criticism of CEOs and boards during the 1980s,when corporate takeovers were regular occurrences,was

The dynamic process by which business seeks to perpetuate its acceptance is called

The principal responsibilities of the audit committee are to

The Business and Society Relationship

Orporate Citi7cnship: Social Responsibility Ferformancc, Sustolinability

The Stoikt:holdc:r Approach to Businssotit:l, and Elhics

Strategic F Anagen1ent and Corpor3te Public Policy

Lss-Ue, Risk, and Crisis Tanage1ucnt

Busi Ness Ethics Fundamentals

Personal Aud Organizational Ethics

Business Ethics and Technology

Ethical Issues in the Global Arena

Business, Go,crnmcnl, and Rcgulation

Business Influence on Gocrnment and Public Policy

Consun1er Stakeholders:information Issues and Responses

Consu1ner Stakeholders:product and Service Lssues

Sustolinability and the Naturnl Enironmenl

Buiiinc11s Iand Community Stakcholdn1

Employee Stolkeholders and Vorkplace Jssud

Employtt Stnkcholdcr11: Privacy, Safcty, and Tlcalth

E1nploy 1ncnt Discrhnination and Affir1native Action

Filters