Question 1

A member of the board who is a top executive of the firm is called a(n) _____.

Accepted Answer

A)  outside director 
B)  executive manager 
C)  inside director 
D)  co-manager 
A)  outside director 
B)  executive manager 
C)  inside director 
D)  co-manager C

Question 2

Listing shares on foreign stock exchanges is known as _____.

Accepted Answer

A)  capital rationing 
B)  diagonal spread 
C)  cross-listing 
D)  primary listing 
A)  capital rationing 
B)  diagonal spread 
C)  cross-listing 
D)  primary listing C

Question 3

Explain the role of the Board of Directors.

Accepted Answer

Boards of directors perform control,service,and resource acquisition functions.Boards' effectiveness in serving the control function stems from their independence,deterrence,and norms.The ability to effectively control managers boils down to how independent directors are.There is a lack of deterrence on the part of directors should they fail to protect shareholder interests.When challenging management,directors have few norms to draw on.In addition to control,another important function of the board is service-primarily advising the CEO.The board is also responsible for resource acquisition for the focal firm.

Question 4

Activities that enrich controlling shareholders at the expense of minority shareholders are referred to as _____.

Accepted Answer

A)  amortization 
B)  accretion 
C)  backwardation 
D)  expropriation 
A)  amortization 
B)  accretion 
C)  backwardation 
D)  expropriation

Question 5

The costs associated with principal-agent relationships are called _____.

Accepted Answer

A)  principal costs 
B)  opportunity costs 
C)  agency costs 
D)  actual costs 
A)  principal costs 
B)  opportunity costs 
C)  agency costs 
D)  actual costs

Question 6

_____ is the relationship among various participants in determining the direction and performance of corporations.

Accepted Answer

A)  Corporate citizenship 
B)  Corporate social responsibility 
C)  Corporate conscience 
D)  Corporate governance 
A)  Corporate citizenship 
B)  Corporate social responsibility 
C)  Corporate conscience 
D)  Corporate governance

Question 7

_____ refers to a firm's failure to satisfy the terms of a loan obligation.

Accepted Answer

A)  Debt 
B)  Dissolution 
C)  Default 
D)  Defeasance 
A)  Debt 
B)  Dissolution 
C)  Default 
D)  Defeasance

Question 8

A form of corporate theft that diverts resources from the firm for personal or family use is called _____.

Accepted Answer

A)  tunneling 
B)  swapping 
C)  flipping 
D)  paging 
A)  tunneling 
B)  swapping 
C)  flipping 
D)  paging

Question 9

The conflicts between controlling shareholders and minority shareholders are called _____.

Accepted Answer

A)  owner-manager conflicts 
B)  agent-agent conflicts 
C)  principal-agent conflicts 
D)  principal-principal conflicts 
A)  owner-manager conflicts 
B)  agent-agent conflicts 
C)  principal-agent conflicts 
D)  principal-principal conflicts

Question 10

The Anglo-American and the continental European-Japanese systems are the two primary corporate governance families in the world.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the opportunistic agents versus managerial stewards' debate concerning corporate finance and governance.

Accepted Answer

The agency theory assumes managers to be

Question 12

The institution-based view argues that among a number of firms governed by the same set of rules,some excel more than others because of differences in firm-specific capabilities that leverage advantage in corporate governance.

Accepted Answer

A) True 
 B)False

Question 13

Voice-based governance mechanisms are external mechanisms.

Accepted Answer

A) True 
 B)False

Question 14

Since the 1980s,American managers have become much more focused on stock prices,resulting in "shareholder capitalism."

Accepted Answer

A) True 
 B)False

Question 15

Elaborate on the external governance mechanisms.

Accepted Answer

There are three external governance mech

Question 16

The minimization of principal-agent conflicts through concentration of ownership and control,unfortunately,introduces more principal-principal conflicts.

Accepted Answer

A) True 
 B)False

Question 17

Agency relationship refers to the relationship between different shareholders.

Accepted Answer

A) True 
 B)False

Question 18

The board of directors' effectiveness in serving the control function stems from their independence,deterrence,and norms.

Accepted Answer

A) True 
 B)False

Question 19

Corporations in _____ are bank-oriented,network-based systems.

Accepted Answer

A)  China 
B)  continental Europe 
C)  the United States 
D)  the United Kingdom 
A)  China 
B)  continental Europe 
C)  the United States 
D)  the United Kingdom

Question 20

In the context of internal governance mechanisms,if accounting-based measures are adopted,stock prices are subject to too many forces for a manager to manipulate the price.

Accepted Answer

A) True 
 B)False

A member of the board who is a top executive of the firm is called a(n) _____.

Listing shares on foreign stock exchanges is known as _____.

Explain the role of the Board of Directors.

Activities that enrich controlling shareholders at the expense of minority shareholders are referred to as _____.

The costs associated with principal-agent relationships are called _____.

_____ is the relationship among various participants in determining the direction and performance of corporations.

_____ refers to a firm's failure to satisfy the terms of a loan obligation.

A form of corporate theft that diverts resources from the firm for personal or family use is called _____.

The conflicts between controlling shareholders and minority shareholders are called _____.

The Anglo-American and the continental European-Japanese systems are the two primary corporate governance families in the world.

Discuss the opportunistic agents versus managerial stewards' debate concerning corporate finance and governance.

The institution-based view argues that among a number of firms governed by the same set of rules,some excel more than others because of differences in firm-specific capabilities that leverage advantage in corporate governance.

Voice-based governance mechanisms are external mechanisms.

Since the 1980s,American managers have become much more focused on stock prices,resulting in "shareholder capitalism."

Elaborate on the external governance mechanisms.

The minimization of principal-agent conflicts through concentration of ownership and control,unfortunately,introduces more principal-principal conflicts.

Agency relationship refers to the relationship between different shareholders.

The board of directors' effectiveness in serving the control function stems from their independence,deterrence,and norms.

Corporations in _____ are bank-oriented,network-based systems.

In the context of internal governance mechanisms,if accounting-based measures are adopted,stock prices are subject to too many forces for a manager to manipulate the price.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 16: Financing and Governing the Corporation Globally

A member of the board who is a top executive of the firm is called a(n) _____.

Listing shares on foreign stock exchanges is known as _____.

Explain the role of the Board of Directors.

Activities that enrich controlling shareholders at the expense of minority shareholders are referred to as _____.

The costs associated with principal-agent relationships are called _____.

_____ is the relationship among various participants in determining the direction and performance of corporations.

_____ refers to a firm's failure to satisfy the terms of a loan obligation.

A form of corporate theft that diverts resources from the firm for personal or family use is called _____.

The conflicts between controlling shareholders and minority shareholders are called _____.

The Anglo-American and the continental European-Japanese systems are the two primary corporate governance families in the world.

Discuss the opportunistic agents versus managerial stewards' debate concerning corporate finance and governance.

The institution-based view argues that among a number of firms governed by the same set of rules,some excel more than others because of differences in firm-specific capabilities that leverage advantage in corporate governance.

Voice-based governance mechanisms are external mechanisms.

Since the 1980s,American managers have become much more focused on stock prices,resulting in "shareholder capitalism."

Elaborate on the external governance mechanisms.

The minimization of principal-agent conflicts through concentration of ownership and control,unfortunately,introduces more principal-principal conflicts.

Agency relationship refers to the relationship between different shareholders.

The board of directors' effectiveness in serving the control function stems from their independence,deterrence,and norms.

Corporations in _____ are bank-oriented,network-based systems.

In the context of internal governance mechanisms,if accounting-based measures are adopted,stock prices are subject to too many forces for a manager to manipulate the price.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Managing Corporate Social Responsibility Globally

Filters