Question 1

In an agency relationship,a person who delegates authority is called a(n) _____.

Accepted Answer

A)  principal 
B)  agent 
C)  manager 
D)  employee 
A)  principal 
B)  agent 
C)  manager 
D)  employee

Question 2

A non-management member of the board is called _____.

Accepted Answer

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

Question 3

The New York Stock Exchange (NYSE) and NASDAQ have a lot of non-US firms listed.This is an example of cross-listing.

Accepted Answer

A) True 
 B)False

Question 4

Other than families,the state is another major owner of firms around the world.

Accepted Answer

A) True 
 B)False

Question 5

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature _____ ownership.

Accepted Answer

A)  concentrated state 
B)  concentrated family 
C)  diffused family 
D)  diffused state 
A)  concentrated state 
B)  concentrated family 
C)  diffused family 
D)  diffused state

Question 6

_____ is a means by which investors,often in partnership with incumbent managers,issue bonds and use the cash raised to purchase the firm's stock.

Accepted Answer

A)  Hedged tender 
B)  Flat trade 
C)  Adjustable-rate mortgage 
D)  Leveraged buyout 
A)  Hedged tender 
B)  Flat trade 
C)  Adjustable-rate mortgage 
D)  Leveraged buyout

Question 7

Companies with diffused ownership have a separation of ownership and control.

Accepted Answer

A) True 
 B)False

Question 8

Outline the principal-agent problems in an agency relationship.

Accepted Answer

The relationship between shareholders an

Question 9

Which of the following statement concerning principal-agent versus principal-principal conflicts is true?

Accepted Answer

A)  Formal institutional protection is often lacking in principal-agent conflicts. 
B)  Courts are more protective of minority shareholder rights in principal-principal conflicts. 
C)  Manifestations in principal-agent conflicts take the form of expropriation. 
D)  Considering ownership pattern in principal-principal conflicts, often greater than 50 percent of equity is controlled by the largest shareholders. 
A)  Formal institutional protection is often lacking in principal-agent conflicts. 
B)  Courts are more protective of minority shareholder rights in principal-principal conflicts. 
C)  Manifestations in principal-agent conflicts take the form of expropriation. 
D)  Considering ownership pattern in principal-principal conflicts, often greater than 50 percent of equity is controlled by the largest shareholders.

Question 10

____ are persons to whom authority is delegated.

Accepted Answer

A)  Agents 
B)  Principals 
C)  Shareholders 
D)  Acquirers 
A)  Agents 
B)  Principals 
C)  Shareholders 
D)  Acquirers

Question 11

Corporations in the United States and the United Kingdom rely mostly on _____.

Accepted Answer

A)  voice-based, internal mechanism 
B)  bank-oriented, network-based systems 
C)  bank-oriented, high-tension systems 
D)  exit-based, external mechanism 
A)  voice-based, internal mechanism 
B)  bank-oriented, network-based systems 
C)  bank-oriented, high-tension systems 
D)  exit-based, external mechanism

Question 12

The main external governance mechanism is the _____.

Accepted Answer

A)  market for corporate control 
B)  market for product competition 
C)  market for private equity 
D)  market for stock options 
A)  market for corporate control 
B)  market for product competition 
C)  market for private equity 
D)  market for stock options

Question 13

Shareholders purchase stock both for dividends and for the growth potential of the stock.

Accepted Answer

A) True 
 B)False

Question 14

Market for private equity is also known as the takeover market.

Accepted Answer

A) True 
 B)False

Question 15

Loan issued by the firm is called a(n) _____.

Accepted Answer

A)  option 
B)  unit trust 
C)  dividend 
D)  bond 
A)  option 
B)  unit trust 
C)  dividend 
D)  bond

Question 16

In firms with separation of ownership and control,ownership is concentrated with a few owners.

Accepted Answer

A) True 
 B)False

Question 17

One of the leading indicators of concentrated family ownership and control is the appointment of family members as board chairman,CEO,and other TMT members.

Accepted Answer

A) True 
 B)False

Question 18

Firms with ____ ownership have a separation of ownership and control.

Accepted Answer

A)  state 
B)  concentrated 
C)  diffused 
D)  focused 
A)  state 
B)  concentrated 
C)  diffused 
D)  focused

Question 19

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature concentrated family ownership and control.

Accepted Answer

A) True 
 B)False

Question 20

In the context of governance mechanisms,_____ mechanism refers to shareholders' willingness to work with managers,usually through the board.

Accepted Answer

A)  exit-based 
B)  voice-based 
C)  private equity-based 
D)  corporate control-based 
A)  exit-based 
B)  voice-based 
C)  private equity-based 
D)  corporate control-based

In an agency relationship,a person who delegates authority is called a(n) _____.

A non-management member of the board is called _____.

The New York Stock Exchange (NYSE) and NASDAQ have a lot of non-US firms listed.This is an example of cross-listing.

Other than families,the state is another major owner of firms around the world.

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature _____ ownership.

_____ is a means by which investors,often in partnership with incumbent managers,issue bonds and use the cash raised to purchase the firm's stock.

Companies with diffused ownership have a separation of ownership and control.

Outline the principal-agent problems in an agency relationship.

Which of the following statement concerning principal-agent versus principal-principal conflicts is true?

____ are persons to whom authority is delegated.

Corporations in the United States and the United Kingdom rely mostly on _____.

The main external governance mechanism is the _____.

Shareholders purchase stock both for dividends and for the growth potential of the stock.

Market for private equity is also known as the takeover market.

Loan issued by the firm is called a(n) _____.

In firms with separation of ownership and control,ownership is concentrated with a few owners.

One of the leading indicators of concentrated family ownership and control is the appointment of family members as board chairman,CEO,and other TMT members.

Firms with ____ ownership have a separation of ownership and control.

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature concentrated family ownership and control.

In the context of governance mechanisms,_____ mechanism refers to shareholders' willingness to work with managers,usually through the board.

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

In an agency relationship,a person who delegates authority is called a(n) _____.

A non-management member of the board is called _____.

The New York Stock Exchange (NYSE) and NASDAQ have a lot of non-US firms listed.This is an example of cross-listing.

Other than families,the state is another major owner of firms around the world.

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature _____ ownership.

_____ is a means by which investors,often in partnership with incumbent managers,issue bonds and use the cash raised to purchase the firm's stock.

Companies with diffused ownership have a separation of ownership and control.

Outline the principal-agent problems in an agency relationship.

Which of the following statement concerning principal-agent versus principal-principal conflicts is true?

____ are persons to whom authority is delegated.

Corporations in the United States and the United Kingdom rely mostly on _____.

The main external governance mechanism is the _____.

Shareholders purchase stock both for dividends and for the growth potential of the stock.

Market for private equity is also known as the takeover market.

Loan issued by the firm is called a(n) _____.

In firms with separation of ownership and control,ownership is concentrated with a few owners.

One of the leading indicators of concentrated family ownership and control is the appointment of family members as board chairman,CEO,and other TMT members.

Firms with ____ ownership have a separation of ownership and control.

The vast majority of large firms throughout continental Europe,Asia,Latin America,and Africa feature concentrated family ownership and control.

In the context of governance mechanisms,_____ mechanism refers to shareholders' willingness to work with managers,usually through the board.

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