Exam 10: Corporate Governance and Reform

According to 2009 survey results on how important the interests of specific stakeholder groups should be in the business decisions by corporate CEOs,the ________ interests should come first in a CEO's business decisions.

The current and future role and responsibilities of business are in many ways ultimately dependent on the degree of ________ that the people have in business.

Describe the three fundamental dilemmas that were solved by the creation of the corporation.

In more than ________ percent of the companies in the U.S.Fortune 500,the CEO is also the chairman of the board.

The legal body that is accountable for the governance of the corporation is its ________.

About ________ percent of consumers are willing to pay a premium for sustainable goods despite the economic downturn.

There are differing perceptions of different cultures to the trustworthiness of business.According to the text,the public holds greater faith in business to do what is right (for society)in ________ and ________ than in the United States and United Kingdom.

The field of thought known as ________ is the study of how shareholder and management's interests may diverge and how a firm can motivate managers to act like owners when managing the corporation.

William is employed at a firm in his hometown.He can be described as an external stakeholder of his firm.

________ refers to the operation of a firm or organization in a manner which attempts to balance the interests of all stakeholders of the organization.

Outside the U.S.and U.K.,ownership is usually characterized by controlling shareholders.Typical controlling shareholders are: government,institutions,family,and consortiums.

Equity markets,debt markets,auditors,legal advisors,and regulators are elements of the internal structure of corporate governance.

Executives from Enron,WorldCom,Parmalat,Global Crossing,Tyco,Adelphia,HealthSouth,and other firms represent failures in corporate governance.

Totally Tea is owned by a few private individuals.Totally Tea is an example of a(n):

The management at Cold Chill Ice Cream Company attempts to balance the interests of all stakeholders of the organization.Cold Chill has a predominant business philosophy of:

If a corporation loses money,acquires debt,or incurs legal liabilities,the individual owners are at risk of losing more than what they have invested in the company.

________ represents the relationship among stakeholders that is used to determine and control the strategic direction and performance of the corporation.

List the four major requirements of the Sarbanes-Oxley Act.

________ is often described as a goal,while ________ is an obligation of the corporation.

Melanie lives in a small community in Virginia.The vast majority of people who live in the area shop and dine at locally-owned businesses and restaurants.With news that a large supermarket might be opening in her town,Melanie and others are worried about the locally-owned businesses and their future.Melanie and the other members of her community are examples of ________ stakeholders.