Question 1

In implementing the Sarbanes-Oxley Act,the SEC required in 2003 that a company disclose

Accepted Answer

A)  the number of insiders on their PR committee. 
B)  if it has adopted a code of ethics that applied to the CEO and the CFO. 
C)  the CEO's pay. 
D)  the CFO's pay. 
E)  all of the above 
A)  the number of insiders on their PR committee. 
B)  if it has adopted a code of ethics that applied to the CEO and the CFO. 
C)  the CEO's pay. 
D)  the CFO's pay. 
E)  all of the above B

Question 2

The U.S.Clayton Act and the Banking Act of 1933

Accepted Answer

A)  promote interlocking directorates by U.S. companies to foster better communications and working relationships. 
B)  prohibit acts or contracts tending to create a monopoly. 
C)  prevent unfair practices in interstate commerce. 
D)  promote racial parity on the board of directors. 
E)  prohibit interlocking directorates by U.S. companies competing in the same industry. 
A)  promote interlocking directorates by U.S. companies to foster better communications and working relationships. 
B)  prohibit acts or contracts tending to create a monopoly. 
C)  prevent unfair practices in interstate commerce. 
D)  promote racial parity on the board of directors. 
E)  prohibit interlocking directorates by U.S. companies competing in the same industry. E

Question 3

Under what circumstances does an INDIRECT interlocking directorate exist?

Accepted Answer

A)  when both management and the board establish corporate strategic management 
B)  when a corporation's employees are included on its board 
C)  when one or more individuals on one board also serve on a board of a second firm 
D)  when all board members are also employed by the corporation 
E)  when two corporations have directors who serve on the board of a third firm 
A)  when both management and the board establish corporate strategic management 
B)  when a corporation's employees are included on its board 
C)  when one or more individuals on one board also serve on a board of a second firm 
D)  when all board members are also employed by the corporation 
E)  when two corporations have directors who serve on the board of a third firm E

Question 4

A 2011 McKinsey and Company survey found that less than ten percent of a board's time is spent on current strategy.

Accepted Answer

A) True 
 B)False

Question 5

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

Accepted Answer

A)  Population ecology 
B)  Motivation 
C)  Stewardship 
D)  Agency 
E)  Goal setting 
A)  Population ecology 
B)  Motivation 
C)  Stewardship 
D)  Agency 
E)  Goal setting

Question 6

Why is the use of the combined Chair/CEO role being increasingly criticized?

Accepted Answer

The use of the combined Chair/CEO role i

Question 7

The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest.

Accepted Answer

A) True 
 B)False

Question 8

A description of what the company is capable of becoming is referred to as

Accepted Answer

A)  strategic vision. 
B)  strategic concept. 
C)  strategic mission. 
D)  strategic flexibility. 
E)  strategic familiarity. 
A)  strategic vision. 
B)  strategic concept. 
C)  strategic mission. 
D)  strategic flexibility. 
E)  strategic familiarity.

Question 9

Which of the following is a trend in corporate governance?

Accepted Answer

A)  Boards are getting less involved in shaping corporate strategy. 
B)  Shareholders are demanding that directors and top managers own less stock in the company. 
C)  Boards are establishing mandatory retirement ages for board members. 
D)  Boards are getting larger. 
E)  Boards are looking for fewer members with international experience. 
A)  Boards are getting less involved in shaping corporate strategy. 
B)  Shareholders are demanding that directors and top managers own less stock in the company. 
C)  Boards are establishing mandatory retirement ages for board members. 
D)  Boards are getting larger. 
E)  Boards are looking for fewer members with international experience.

Question 10

Which of the following provides an example of a transformational leader?

Accepted Answer

A)  Phil Knight at Nike has energized his corporation and commanded respect. 
B)  Louis Gerstner proposed a new vision for IBM to change its business model from computer hardware to services. 
C)  Microsoft CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed problems with an operating system. 
D)  Verizon Communications CEO Ivan Seidenberg showed his faith in his people by letting his key managers handle important projects and represent the company in public forums. 
E)  all of the above 
A)  Phil Knight at Nike has energized his corporation and commanded respect. 
B)  Louis Gerstner proposed a new vision for IBM to change its business model from computer hardware to services. 
C)  Microsoft CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed problems with an operating system. 
D)  Verizon Communications CEO Ivan Seidenberg showed his faith in his people by letting his key managers handle important projects and represent the company in public forums. 
E)  all of the above

Question 11

Surveys of large U.S.and Canadian corporations found outsiders make up what percentage of total board membership?

Accepted Answer

A)  2% 
B)  30% 
C)  50% 
D)  80% 
E)  98% 
A)  2% 
B)  30% 
C)  50% 
D)  80% 
E)  98%

Question 12

Those directors who fail to act with due care and allow the corporation to be harmed may be held personally liable.

Accepted Answer

A) True 
 B)False

Question 13

Agency theory suggests that the majority of a board needs to be from outside the firm.

Accepted Answer

A) True 
 B)False

Question 14

The function of a nominating committee is to

Accepted Answer

A)  find board members who have compatible viewpoints with management. 
B)  find outside board members for election by the stockholders. 
C)  search for internal employees who would provide valuable insight into the working operations of the corporation. 
D)  search for candidates who could bring prestige to the board. 
E)  find inside board members for election by the stockholders. 
A)  find board members who have compatible viewpoints with management. 
B)  find outside board members for election by the stockholders. 
C)  search for internal employees who would provide valuable insight into the working operations of the corporation. 
D)  search for candidates who could bring prestige to the board. 
E)  find inside board members for election by the stockholders.

Question 15

What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?

Accepted Answer

A)  24% 
B)  34% 
C)  44% 
D)  64% 
E)  74% 
A)  24% 
B)  34% 
C)  44% 
D)  64% 
E)  74%

Question 16

Succession planning for the board and top management team is one of the five responsibilities of the board of directors.

Accepted Answer

A) True 
 B)False

Question 17

Outside directors may be executives of other firms but are not employees of the board's corporation.

Accepted Answer

A) True 
 B)False

Question 18

Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics.They are,however,increasingly frowned upon because of the possibility of collusion.

Accepted Answer

A) True 
 B)False

Question 19

Usually,the strategic planning staff is charged with supporting only top management in the strategic planning process.

Accepted Answer

A) True 
 B)False

Question 20

Board members who are not employed by the corporation,but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Accepted Answer

A)  affiliated directors 
B)  family directors 
C)  retired directors 
D)  management directors 
E)  interlocked directors 
A)  affiliated directors 
B)  family directors 
C)  retired directors 
D)  management directors 
E)  interlocked directors

In implementing the Sarbanes-Oxley Act,the SEC required in 2003 that a company disclose

The U.S.Clayton Act and the Banking Act of 1933

Under what circumstances does an INDIRECT interlocking directorate exist?

A 2011 McKinsey and Company survey found that less than ten percent of a board's time is spent on current strategy.

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

Why is the use of the combined Chair/CEO role being increasingly criticized?

The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest.

A description of what the company is capable of becoming is referred to as

Which of the following is a trend in corporate governance?

Which of the following provides an example of a transformational leader?

Surveys of large U.S.and Canadian corporations found outsiders make up what percentage of total board membership?

Those directors who fail to act with due care and allow the corporation to be harmed may be held personally liable.

Agency theory suggests that the majority of a board needs to be from outside the firm.

The function of a nominating committee is to

What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?

Succession planning for the board and top management team is one of the five responsibilities of the board of directors.

Outside directors may be executives of other firms but are not employees of the board's corporation.

Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics.They are,however,increasingly frowned upon because of the possibility of collusion.

Usually,the strategic planning staff is charged with supporting only top management in the strategic planning process.

Board members who are not employed by the corporation,but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Basic Concepts in Strategic Management

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters

Exam 2: Corporate Governance

In implementing the Sarbanes-Oxley Act,the SEC required in 2003 that a company disclose

The U.S.Clayton Act and the Banking Act of 1933

Under what circumstances does an INDIRECT interlocking directorate exist?

A 2011 McKinsey and Company survey found that less than ten percent of a board's time is spent on current strategy.

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

Why is the use of the combined Chair/CEO role being increasingly criticized?

The combined chairperson/CEO position is being increasingly criticized because of the potential for conflict of interest.

A description of what the company is capable of becoming is referred to as

Which of the following is a trend in corporate governance?

Which of the following provides an example of a transformational leader?

Surveys of large U.S.and Canadian corporations found outsiders make up what percentage of total board membership?

Those directors who fail to act with due care and allow the corporation to be harmed may be held personally liable.

Agency theory suggests that the majority of a board needs to be from outside the firm.

The function of a nominating committee is to

What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?

Succession planning for the board and top management team is one of the five responsibilities of the board of directors.

Outside directors may be executives of other firms but are not employees of the board's corporation.

Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics.They are,however,increasingly frowned upon because of the possibility of collusion.

Usually,the strategic planning staff is charged with supporting only top management in the strategic planning process.

Board members who are not employed by the corporation,but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Basic Concepts in Strategic Management

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Suggestions for Case Analysis

Filters