Question 1

Identify a feature of takeover artists.

Accepted Answer

A) They help implement shareholder strategies once they convince other investors to sell their shares. 
B) They make public offers called petition offers to purchase shares of dissatisfied investors. 
C) They are investors who are attracted to the high share prices of firms. 
D) They believe they can manage a corporation's assets better than the current management team. 
A) They help implement shareholder strategies once they convince other investors to sell their shares. 
B) They make public offers called petition offers to purchase shares of dissatisfied investors. 
C) They are investors who are attracted to the high share prices of firms. 
D) They believe they can manage a corporation's assets better than the current management team.

Question 2

Which of the following is a feature of the outside directors of a corporation?

Accepted Answer

A) They bring their skills and working knowledge of the firm's operations and strategies to the board. 
B) They do not have to worry about losing their jobs if they offer opinions that the firm's executives might not want to hear. 
C) They are usually the executives or managers of a firm. 
D) They ensure that a firm's strategy serves the financial interests of all stakeholders. 
A) They bring their skills and working knowledge of the firm's operations and strategies to the board. 
B) They do not have to worry about losing their jobs if they offer opinions that the firm's executives might not want to hear. 
C) They are usually the executives or managers of a firm. 
D) They ensure that a firm's strategy serves the financial interests of all stakeholders.

Question 3

Which of the following statements is true of the intrinsic stakeholder model of business management?

Accepted Answer

A) It is the belief that stakeholder groups have the right to be considered in decisions that will impact them. 
B) It is the belief that giving importance to stakeholders makes it difficult for managers to effectively run their firms. 
C) It is the belief that stakeholder interactions have longer-term consequences on a firm's performance and competitive advantage. 
D) It is the belief that financial capital is the most important input into making a business successful. 
A) It is the belief that stakeholder groups have the right to be considered in decisions that will impact them. 
B) It is the belief that giving importance to stakeholders makes it difficult for managers to effectively run their firms. 
C) It is the belief that stakeholder interactions have longer-term consequences on a firm's performance and competitive advantage. 
D) It is the belief that financial capital is the most important input into making a business successful.

Question 4

Abdul, a student of business management, claims that the stakeholder model is not a good model of business management. Which of the following would he most likely cite as a reason for his claim?

Accepted Answer

A) The shareholders are not the legal owners of the corporation's assets. 
B) Managers need to focus on the only objective of increasing shareholder value. 
C) The stakeholder groups should be considered in decisions that will impact them. 
D) Managers spend most of their time interacting with stakeholders. 
A) The shareholders are not the legal owners of the corporation's assets. 
B) Managers need to focus on the only objective of increasing shareholder value. 
C) The stakeholder groups should be considered in decisions that will impact them. 
D) Managers spend most of their time interacting with stakeholders.

Question 5

Newe Chemicals Inc. is a company that manufactures household chemicals. Its customers consist of people who purchase its products. They will be affected by the business through the ___________.

Accepted Answer

A) wages it pays to its employees 
B) payment it makes to its suppliers 
C) earnings it generates for its investors 
D) advertising campaigns it uses to promote its products 
A) wages it pays to its employees 
B) payment it makes to its suppliers 
C) earnings it generates for its investors 
D) advertising campaigns it uses to promote its products

Question 6

Anastasia is one of the managers of Geller Technology Inc., an information technology firm. She will be considered the agent of the _________.

Accepted Answer

A) people who own stocks of the firm 
B) people who purchase the software created by the firm 
C) software engineers who work for the firm 
D) businesses that use the software created by the firm 
A) people who own stocks of the firm 
B) people who purchase the software created by the firm 
C) software engineers who work for the firm 
D) businesses that use the software created by the firm

Question 7

Identify an accurate statement about corporate ethics and culture.

Accepted Answer

A) Cultures that promote ethical behavior allow people to deny the ethical dimension of their actions. 
B) Culture pilots an organization by helping each individual manager decide what to do. 
C) An organization's culture, by itself, is either good or bad. 
D) The way people perceive and react to the ethical challenges they face as they do their jobs is rarely influenced by culture. 
A) Cultures that promote ethical behavior allow people to deny the ethical dimension of their actions. 
B) Culture pilots an organization by helping each individual manager decide what to do. 
C) An organization's culture, by itself, is either good or bad. 
D) The way people perceive and react to the ethical challenges they face as they do their jobs is rarely influenced by culture.

Question 8

DigiGo Inc. is a multinational corporation that manufactures and sells home appliances. Who among the following are its principals?

Accepted Answer

A) The people who own stocks of the company 
B) The people who purchase the home appliances it manufactures 
C) The electronics engineers who work for the company 
D) The retailers that sell the home appliances it manufactures 
A) The people who own stocks of the company 
B) The people who purchase the home appliances it manufactures 
C) The electronics engineers who work for the company 
D) The retailers that sell the home appliances it manufactures

Question 9

Veltek Development Solutions was a company that existed in the nineteenth century. It was formed after obtaining a charter from the state legislature for the purpose of building a small bridge over a river. In this scenario, Veltek Development Solutions can be considered a ________.

Accepted Answer

A) cooperative 
B) limited partnership 
C) general partnership 
D) corporation 
A) cooperative 
B) limited partnership 
C) general partnership 
D) corporation

Question 10

Which of the following statements is true of an individual proprietorship?

Accepted Answer

A) It is owned by two or more partners. 
B) It is run and owned by the same person. 
C) It is considered a distinct and separate entity from its owners. 
D) It is a rare form of business ownership in the United States. 
A) It is owned by two or more partners. 
B) It is run and owned by the same person. 
C) It is considered a distinct and separate entity from its owners. 
D) It is a rare form of business ownership in the United States.

Question 11

Tinos Inc. is a company that manufactures toys. Which of the following would be its primary stakeholder?

Accepted Answer

A) Other local toy manufacturers 
B) Foreign toy manufacturers 
C) People who purchase its toys 
D) People who purchase toys in foreign countries 
A) Other local toy manufacturers 
B) Foreign toy manufacturers 
C) People who purchase its toys 
D) People who purchase toys in foreign countries

Question 12

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management. Which of the following statements should he use in order to best support his claim?

Accepted Answer

A) The shareholders are not the legal owners of the corporation's assets. 
B) Financial capital is the most important input into making a business successful. 
C) The shareholders cannot not trade or own any stock of the corporation. 
D) Managing for shareholder value creates negative consequences for firms. 
A) The shareholders are not the legal owners of the corporation's assets. 
B) Financial capital is the most important input into making a business successful. 
C) The shareholders cannot not trade or own any stock of the corporation. 
D) Managing for shareholder value creates negative consequences for firms.

Question 13

Ria and Maria start an investment firm together that is not a separate legal entity. They have an equal share of the profits and the liabilities of the business. This type of business ownership can be best categorized as a(n)________.

Accepted Answer

A) cooperative 
B) partnership 
C) corporation 
D) individual proprietorship 
A) cooperative 
B) partnership 
C) corporation 
D) individual proprietorship

Question 14

Describe two of the arguments used by participants of debates about ethics.

Accepted Answer

One argument used by participants in deb

Question 15

Salma owns stocks of an e-commerce business. In exchange for the money she has invested, she has received two property rights from the business. Which of the following is most likely to be one of the property rights given to her?

Accepted Answer

A) She will get a share of the residual earnings of the business. 
B) She will be the only owner of the assets of the business. 
C) She will get ownership of the private properties owned by other investors of the business. 
D) She will be entitled to a higher percentage of the profits earned by the business. 
A) She will get a share of the residual earnings of the business. 
B) She will be the only owner of the assets of the business. 
C) She will get ownership of the private properties owned by other investors of the business. 
D) She will be entitled to a higher percentage of the profits earned by the business.

Question 16

Identify a way in which principals usually salvage their businesses from agency problems that destroy value.

Accepted Answer

A) They make investments in blue ocean strategies. 
B) They get greenfield investments in equipment or knowledge. 
C) They monitor their manager-agents through the board of directors. 
D) They reduce the compensation and incentives of their manager-agents. 
A) They make investments in blue ocean strategies. 
B) They get greenfield investments in equipment or knowledge. 
C) They monitor their manager-agents through the board of directors. 
D) They reduce the compensation and incentives of their manager-agents.

Question 17

Pick N Shop Inc. operates a chain of supermarkets. The company offers a bonus of $500 to its sales representatives if they can sell products worth $5,000 per month. It also offers bonuses and other benefits to its employees and managers. By offering such bonuses, Pick N Shop Inc. is primarily trying to avoid a(n)________.

Accepted Answer

A) hostile takeover 
B) proxy fight 
C) agency problem 
D) accountability problem 
A) hostile takeover 
B) proxy fight 
C) agency problem 
D) accountability problem

Question 18

Autumn Inc. is a company that functions on its own. It has the right to enter into contracts, hire employees, and also pay taxes. The shareholders of the company are entitled to its profits. Autumn Inc. is an example of a ________.

Accepted Answer

A) cooperative 
B) limited partnership 
C) general partnership 
D) corporation 
A) cooperative 
B) limited partnership 
C) general partnership 
D) corporation

Question 19

Describe how style can help a company create a climate where ethical behavior becomes the expected norm.

Accepted Answer

Style can play a crucial role in creatin

Question 20

What do most businesses do when the principal's investments are difficult to recover?

Accepted Answer

A) They get sunk-cost investments in equipment or knowledge. 
B) They monitor their manager-agents through the board of directors. 
C) They increase the compensation and incentives of their manager-agents. 
D) They make investments in blue ocean strategies. 
A) They get sunk-cost investments in equipment or knowledge. 
B) They monitor their manager-agents through the board of directors. 
C) They increase the compensation and incentives of their manager-agents. 
D) They make investments in blue ocean strategies.

Identify a feature of takeover artists.

Which of the following is a feature of the outside directors of a corporation?

Which of the following statements is true of the intrinsic stakeholder model of business management?

Abdul, a student of business management, claims that the stakeholder model is not a good model of business management. Which of the following would he most likely cite as a reason for his claim?

Newe Chemicals Inc. is a company that manufactures household chemicals. Its customers consist of people who purchase its products. They will be affected by the business through the ___________.

Anastasia is one of the managers of Geller Technology Inc., an information technology firm. She will be considered the agent of the _________.

Identify an accurate statement about corporate ethics and culture.

DigiGo Inc. is a multinational corporation that manufactures and sells home appliances. Who among the following are its principals?

Veltek Development Solutions was a company that existed in the nineteenth century. It was formed after obtaining a charter from the state legislature for the purpose of building a small bridge over a river. In this scenario, Veltek Development Solutions can be considered a ________.

Which of the following statements is true of an individual proprietorship?

Tinos Inc. is a company that manufactures toys. Which of the following would be its primary stakeholder?

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management. Which of the following statements should he use in order to best support his claim?

Ria and Maria start an investment firm together that is not a separate legal entity. They have an equal share of the profits and the liabilities of the business. This type of business ownership can be best categorized as a(n)________.

Describe two of the arguments used by participants of debates about ethics.

Salma owns stocks of an e-commerce business. In exchange for the money she has invested, she has received two property rights from the business. Which of the following is most likely to be one of the property rights given to her?

Identify a way in which principals usually salvage their businesses from agency problems that destroy value.

Autumn Inc. is a company that functions on its own. It has the right to enter into contracts, hire employees, and also pay taxes. The shareholders of the company are entitled to its profits. Autumn Inc. is an example of a ________.

Describe how style can help a company create a climate where ethical behavior becomes the expected norm.

What do most businesses do when the principal's investments are difficult to recover?

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses and Competitive Advantage

Cost Advantage

Differentiation Advantage

Corporate Strategy

Vertical Integration and Outsourcing

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Strategy and Society

Filters

Exam 13: Corporate Governance and Ethics

Identify a feature of takeover artists.

Which of the following is a feature of the outside directors of a corporation?

Which of the following statements is true of the intrinsic stakeholder model of business management?

Abdul, a student of business management, claims that the stakeholder model is not a good model of business management. Which of the following would he most likely cite as a reason for his claim?

Newe Chemicals Inc. is a company that manufactures household chemicals. Its customers consist of people who purchase its products. They will be affected by the business through the ___________.

Anastasia is one of the managers of Geller Technology Inc., an information technology firm. She will be considered the agent of the _________.

Identify an accurate statement about corporate ethics and culture.

DigiGo Inc. is a multinational corporation that manufactures and sells home appliances. Who among the following are its principals?

Veltek Development Solutions was a company that existed in the nineteenth century. It was formed after obtaining a charter from the state legislature for the purpose of building a small bridge over a river. In this scenario, Veltek Development Solutions can be considered a ________.

Which of the following statements is true of an individual proprietorship?

Tinos Inc. is a company that manufactures toys. Which of the following would be its primary stakeholder?

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management. Which of the following statements should he use in order to best support his claim?

Ria and Maria start an investment firm together that is not a separate legal entity. They have an equal share of the profits and the liabilities of the business. This type of business ownership can be best categorized as a(n)________.

Describe two of the arguments used by participants of debates about ethics.

Salma owns stocks of an e-commerce business. In exchange for the money she has invested, she has received two property rights from the business. Which of the following is most likely to be one of the property rights given to her?

Identify a way in which principals usually salvage their businesses from agency problems that destroy value.

Autumn Inc. is a company that functions on its own. It has the right to enter into contracts, hire employees, and also pay taxes. The shareholders of the company are entitled to its profits. Autumn Inc. is an example of a ________.

Describe how style can help a company create a climate where ethical behavior becomes the expected norm.

What do most businesses do when the principal's investments are difficult to recover?

What Is Business Strategy

Analysis of the External Environment: Opportunities and Threats

Internal Analysis: Strengths, Weaknesses and Competitive Advantage

Cost Advantage

Differentiation Advantage

Corporate Strategy

Vertical Integration and Outsourcing

Strategic Alliances

International Strategy

Innovative Strategies That Change the Nature of Competition

Competitive Strategy

Implementing Strategy

Strategy and Society

Filters