Exam 9: Strategic Control and Corporate Governance

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Explain why control systems are necessary for strategy implementation.

Which of the following statements about action plans is true?

In single-loop learning, the assumptions, premises, goals, and strategies of the organization are continuously monitored, tested, and reviewed.

The best way to minimize improper and unethical conduct is to ________ and ________.

Which of the following is not a characteristic of effective reward and incentive systems?

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is

Strategic control systems, both informational and behavioral, are used to correct the performance and ultimate strategy of a firm.

Continuous monitoring, in the contemporary approach, is beneficial because

In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. The risk is

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Individual and institutional shareholders have the same rights that include all the following except

External governance control mechanisms include all the following except

It is generally argued that the takeover constraint deters management from

Many institutional investors are aggressive in protecting and enhancing their investments. They are shifting from ________ to owners. They are assuming the role of ________ shareholders and rigorously analyzing issues of corporate governance. In the process, they are reinventing systems of corporate monitoring and accountability.

The board of directors is a group that has a ________ duty to ensure that the company is run consistently with ________ interests of the owners, or shareholders of a corporation and that acts as an ________ between the shareholders and management.

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests, like increasing long-term returns.

In 2016, John Stumpf, CEO of Wells Fargo, was forced to resign after both stakeholder and government scrutiny of the practices of the firm. Firm management had instituted very aggressive sales goals for employees, leading employees to create sham accounts using the names and money of the real customers of the bank. This is an example of ________ corporate governance.

Which of the following is not one of the characteristics of a contemporary control system?

The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential.