Question 1

A third form of blockholder ownership is _____________.

Accepted Answer

A) It is another form of firm ownership used for corporate governance 
B) Local ownership 
C) State ownership 
D) None of the above 
E) All of the above 
A) It is another form of firm ownership used for corporate governance 
B) Local ownership 
C) State ownership 
D) None of the above 
E) All of the above

Question 2

Which of the following is FALSE regarding private equity?

Accepted Answer

A) Includes business angel and venture capital 
B) It refers to the various forms of private funding that are available to companies that are not necessarily publicly traded 
C) The forms vary greatly depending on the stages the company is at. 
D) May take the form of family blockholder 
E) All of the above are true 
A) Includes business angel and venture capital 
B) It refers to the various forms of private funding that are available to companies that are not necessarily publicly traded 
C) The forms vary greatly depending on the stages the company is at. 
D) May take the form of family blockholder 
E) All of the above are true

Question 3

While business angels tend to rely on informal monitoring methods,

Accepted Answer

A) They are linked to having more outsiders on the board of directors. 
B) Venture capitalists emphasize more formal contractual methods of monitoring 
C) Venture capitalists don't rely on monitoring methods 
D) None of the above 
E) All of the above 
A) They are linked to having more outsiders on the board of directors. 
B) Venture capitalists emphasize more formal contractual methods of monitoring 
C) Venture capitalists don't rely on monitoring methods 
D) None of the above 
E) All of the above

Question 4

Research shows that countries that are more individualistic tend to:

Accepted Answer

A) Have board of directors with a higher percentage of outside directors 
B) Have the CEO also act as chairperson of the board of directors 
C) Have a larger percentage of outsiders on the board of directors 
D) All of the above 
E) None of the above 
A) Have board of directors with a higher percentage of outside directors 
B) Have the CEO also act as chairperson of the board of directors 
C) Have a larger percentage of outsiders on the board of directors 
D) All of the above 
E) None of the above

Question 5

Which of the following is NOT TRUE regarding countries with high masculinity?

Accepted Answer

A) Have higher percentage of outside directors 
B) Have a consolidated CEO and chairperson position 
C) Have a larger board of directors 
D) Reflects the aggresiveness and ambition inherent in such countries 
E) Have smaller board of directors 
A) Have higher percentage of outside directors 
B) Have a consolidated CEO and chairperson position 
C) Have a larger board of directors 
D) Reflects the aggresiveness and ambition inherent in such countries 
E) Have smaller board of directors

Question 6

Which of the following is NOT a critical aspect of the board of directors?

Accepted Answer

A) Board independence 
B) Expertise 
C) Size 
D) Seniority 
E) All of the above 
A) Board independence 
B) Expertise 
C) Size 
D) Seniority 
E) All of the above

Question 7

Which of the following are disadvantages of a big board of directors?

Accepted Answer

A) More likely to engage in social loafing 
B) Higher levels of conflict 
C) Increase difficulty to communicate 
D) All of the above 
E) None of the above 
A) More likely to engage in social loafing 
B) Higher levels of conflict 
C) Increase difficulty to communicate 
D) All of the above 
E) None of the above

Question 8

What functions do board of directors play? Discuss some of the key aspects of a board of directors.

Accepted Answer

The board of directors plays several imp

Question 9

Which of the following is true regarding the family blockholder?

Accepted Answer

A) The major challenge with regards to family ownership is the protection of majority shareholders. 
B) Many European nations see a more dominant form of family ownership 
C) When compared to the U.S., Germany and Italy are less likely to have family ownership 
D) Both a.and b. 
E) A, B and C 
A) The major challenge with regards to family ownership is the protection of majority shareholders. 
B) Many European nations see a more dominant form of family ownership 
C) When compared to the U.S., Germany and Italy are less likely to have family ownership 
D) Both a.and b. 
E) A, B and C

Question 10

Which of the following types of ownership demonstrates significant government ownership:

Accepted Answer

A) State ownership 
B) State blockholder 
C) Family blockholder 
D) Corporate blockholder 
E) None of the above 
A) State ownership 
B) State blockholder 
C) Family blockholder 
D) Corporate blockholder 
E) None of the above

Question 11

The basic premise of agency theory is that

Accepted Answer

A) Shareholders and managers have similar interests that need to be managed 
B) Managers always work in the interest of shareholders 
C) Shareholders cannot control top managers 
D) There is no conflict between shareholders and managers 
E) The interests of shareholders may not necessarily coincide with the interests of top managers 
A) Shareholders and managers have similar interests that need to be managed 
B) Managers always work in the interest of shareholders 
C) Shareholders cannot control top managers 
D) There is no conflict between shareholders and managers 
E) The interests of shareholders may not necessarily coincide with the interests of top managers

Question 12

Large shareholders are:

Accepted Answer

A) Individual shareholders owning more than a 20% equity stake in a firm 
B) Individual shareholders owning more than a 50% equity stake in a firm 
C) Typically grouped as blockholders and institutional shareholders. 
D) All of the above 
E) None of the above 
A) Individual shareholders owning more than a 20% equity stake in a firm 
B) Individual shareholders owning more than a 50% equity stake in a firm 
C) Typically grouped as blockholders and institutional shareholders. 
D) All of the above 
E) None of the above

Question 13

Moral hazard refers to

Accepted Answer

A) The legal entity that serves as a nexus for a set of contract among disparate individuals 
B) Adverse selection 
C) Misrepresentation by the CEO of his/her ability to do the work he/she is being paid for 
D) One of the problems top managers face when they deal with shareholders 
E) The ability of top managers to misuse company resources for their own interests 
A) The legal entity that serves as a nexus for a set of contract among disparate individuals 
B) Adverse selection 
C) Misrepresentation by the CEO of his/her ability to do the work he/she is being paid for 
D) One of the problems top managers face when they deal with shareholders 
E) The ability of top managers to misuse company resources for their own interests

Question 14

Which of the following is true regarding shareholders?

Accepted Answer

A) They invest their money in businesses hoping for a return on their investment 
B) They are legal owners of business corporations 
C) There are three main types of shareholders: individual, large and institutional shareholders 
D) A and B 
E) A, B and C 
A) They invest their money in businesses hoping for a return on their investment 
B) They are legal owners of business corporations 
C) There are three main types of shareholders: individual, large and institutional shareholders 
D) A and B 
E) A, B and C

A third form of blockholder ownership is _____________.

Which of the following is FALSE regarding private equity?

While business angels tend to rely on informal monitoring methods,

Research shows that countries that are more individualistic tend to:

Which of the following is NOT TRUE regarding countries with high masculinity?

Which of the following is NOT a critical aspect of the board of directors?

Which of the following are disadvantages of a big board of directors?

What functions do board of directors play? Discuss some of the key aspects of a board of directors.

Which of the following is true regarding the family blockholder?

Which of the following types of ownership demonstrates significant government ownership:

The basic premise of agency theory is that

Large shareholders are:

Moral hazard refers to

Which of the following is true regarding shareholders?

Introduction to Business Ethics

Building Ethics at the Individual Level

Ethical Theories

Stakeholders

Primary Stakeholders: Employees

Primary Stakeholders: Customers

Secondary Stakeholders: The Government, the Media and Non-Governmental Organizations

Information Technology and Ethics

The Environment and Sustainability

Global Ethics

Building Ethics at the Corporate Level: Managing the Ethical Climate

Corporate Social Responsibility

Filters

Exam 7: Primary Stakeholders: Shareholders and Corporate Governance

A third form of blockholder ownership is _____________.

Which of the following is FALSE regarding private equity?

While business angels tend to rely on informal monitoring methods,

Research shows that countries that are more individualistic tend to:

Which of the following is NOT TRUE regarding countries with high masculinity?

Which of the following is NOT a critical aspect of the board of directors?

Which of the following are disadvantages of a big board of directors?

What functions do board of directors play? Discuss some of the key aspects of a board of directors.

Which of the following is true regarding the family blockholder?

Which of the following types of ownership demonstrates significant government ownership:

The basic premise of agency theory is that

Large shareholders are:

Moral hazard refers to

Which of the following is true regarding shareholders?

Introduction to Business Ethics

Building Ethics at the Individual Level

Ethical Theories

Stakeholders

Primary Stakeholders: Employees

Primary Stakeholders: Customers

Secondary Stakeholders: The Government, the Media and Non-Governmental Organizations

Information Technology and Ethics

The Environment and Sustainability

Global Ethics

Building Ethics at the Corporate Level: Managing the Ethical Climate

Corporate Social Responsibility

Filters