Question 1

A study by Korn/Ferry found that ________ of U.S.boards of directors had at least one ethnic minority member in 2007.

Accepted Answer

A)  6% 
B)  26% 
C)  47% 
D)  78% 
E)  96% 
A)  6% 
B)  26% 
C)  47% 
D)  78% 
E)  96%

Question 2

All of the following reflect survey findings of the reasons for which individuals serve on a board EXCEPT

Accepted Answer

A)  notoriety/prestige. 
B)  interested in the business. 
C)  make a difference. 
D)  willing to always agree with executive decisions. 
E)  stay active in the business community. 
A)  notoriety/prestige. 
B)  interested in the business. 
C)  make a difference. 
D)  willing to always agree with executive decisions. 
E)  stay active in the business community.

Question 3

The percentage of large U.S.corporations using nominating committees to identify potential new directors is approximately

Accepted Answer

A)  less than 6%. 
B)  37%. 
C)  57%. 
D)  87%. 
E)  97%. 
A)  less than 6%. 
B)  37%. 
C)  57%. 
D)  87%. 
E)  97%.

Question 4

For many large corporations the typical strategic planning staff has just fewer than how many people?

Accepted Answer

A)  5 
B)  10 
C)  7 
D)  15 
E)  3 
A)  5 
B)  10 
C)  7 
D)  15 
E)  3

Question 5

The average board member of a U.S.Fortune 500 firm serves on ________ board(s).

Accepted Answer

A)  3 
B)  6 
C)  9 
D)  12 
E)  only 1 
A)  3 
B)  6 
C)  9 
D)  12 
E)  only 1

Question 6

The lowest degree of involvement for a board of directors is the catalyst level of interaction.

Accepted Answer

A) True 
 B)False

Question 7

A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with

Accepted Answer

A)  codetermination. 
B)  figurehead role. 
C)  cumulative voting. 
D)  accountability. 
E)  due care. 
A)  codetermination. 
B)  figurehead role. 
C)  cumulative voting. 
D)  accountability. 
E)  due care.

Question 8

The role of the board of directors in the strategic management of the corporation is likely to

Accepted Answer

A)  be more active in the future. 
B)  be less active in the future. 
C)  be nonexistent as planning departments take over. 
D)  remain the same. 
E)  shift more toward managing daily operations. 
A)  be more active in the future. 
B)  be less active in the future. 
C)  be nonexistent as planning departments take over. 
D)  remain the same. 
E)  shift more toward managing daily operations.

Question 9

According to the text,one of the primary responsibilities of top management in strategic management is

Accepted Answer

A)  ensuring that day-to-day operations are efficient and well run. 
B)  providing executive leadership. 
C)  balancing the budget. 
D)  managing the short-term planning process. 
E)  making all important decisions. 
A)  ensuring that day-to-day operations are efficient and well run. 
B)  providing executive leadership. 
C)  balancing the budget. 
D)  managing the short-term planning process. 
E)  making all important decisions.

Question 10

According to ________ theory,________ directors tend to identify with the corporation and its success.

Accepted Answer

A)  agency; inside 
B)  corporate governance; inside 
C)  stewardship; inside 
D)  corporate governance; affiliated 
E)  stewardship; outside 
A)  agency; inside 
B)  corporate governance; inside 
C)  stewardship; inside 
D)  corporate governance; affiliated 
E)  stewardship; outside

Question 11

The relationship among the board of directors,top management,and shareholders is referred to as

Accepted Answer

A)  corporate synergy. 
B)  corporate management. 
C)  corporate governance. 
D)  corporate strategy. 
E)  corporate responsibility. 
A)  corporate synergy. 
B)  corporate management. 
C)  corporate governance. 
D)  corporate strategy. 
E)  corporate responsibility.

Question 12

A minority percentage of large corporations in the Americas and Europe may keep the firm's recently retired CEO on the board after retirement since there is a greater likelihood of a conflict of interest and less objectivity.

Accepted Answer

A) True 
 B)False

Question 13

The New York Stock Exchange (NYSE) requires corporations to have

Accepted Answer

A)  a majority of the board be outsiders. 
B)  cumulative voting. 
C)  at least one employee director as a representative on the board. 
D)  at least two outside directors providing stockholder representation. 
E)  an audit committee composed entirely of independent, outside members. 
A)  a majority of the board be outsiders. 
B)  cumulative voting. 
C)  at least one employee director as a representative on the board. 
D)  at least two outside directors providing stockholder representation. 
E)  an audit committee composed entirely of independent, outside members.

Question 14

Generally,the smaller the corporation,the less active is its board of directors.

Accepted Answer

A) True 
 B)False

Question 15

When a board of directors is involved to a limited degree in the performance or review of selected key decisions,indicators,or programs of management,the degree of involvement is referred to as

Accepted Answer

A)  rubber stamp. 
B)  nominal participation. 
C)  active participation. 
D)  minimal review. 
E)  phantom. 
A)  rubber stamp. 
B)  nominal participation. 
C)  active participation. 
D)  minimal review. 
E)  phantom.

Question 16

By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is not true regarding the board of directors?

Accepted Answer

A)  The board is charged by law to act with due care. 
B)  If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done. 
C)  Director liability insurance is often needed to attract people to become members of boards. 
D)  Directors must be aware of the needs of various constituent groups to balance all their interests. 
E)  More than half of all publicly traded companies in the United States are incorporated in New York, requiring that the corporation be managed in accordance with NY state laws. 
A)  The board is charged by law to act with due care. 
B)  If a director or the board as a whole fails to act with due care and, as a result, the corporation is in some way harmed, the careless director or directors can be held personally liable for the harm done. 
C)  Director liability insurance is often needed to attract people to become members of boards. 
D)  Directors must be aware of the needs of various constituent groups to balance all their interests. 
E)  More than half of all publicly traded companies in the United States are incorporated in New York, requiring that the corporation be managed in accordance with NY state laws.

Question 18

Codetermination

Accepted Answer

A)  is the process by which both management and the board establish corporate strategic management. 
B)  is the inclusion of a corporation's employees on its board. 
C)  occurs when one or more individuals on one board also serve on other boards. 
D)  is present when all board members are also employed by the corporation. 
E)  occurs when minority shareholders concentrate their votes. 
A)  is the process by which both management and the board establish corporate strategic management. 
B)  is the inclusion of a corporation's employees on its board. 
C)  occurs when one or more individuals on one board also serve on other boards. 
D)  is present when all board members are also employed by the corporation. 
E)  occurs when minority shareholders concentrate their votes.

Question 19

What are the responsibilities of the board of directors?

Accepted Answer

The five board of directors' responsibil

Question 20

Outside directors are defined as

Accepted Answer

A)  those individuals who scan the external environment. 
B)  individuals on the board who are not employed by the board's corporation. 
C)  those individuals with public relations responsibilities. 
D)  board members who are also officers or executives employed by the corporation. 
E)  individuals who organize and coordinate politically focused activities. 
A)  those individuals who scan the external environment. 
B)  individuals on the board who are not employed by the board's corporation. 
C)  those individuals with public relations responsibilities. 
D)  board members who are also officers or executives employed by the corporation. 
E)  individuals who organize and coordinate politically focused activities.

A study by Korn/Ferry found that ________ of U.S.boards of directors had at least one ethnic minority member in 2007.

All of the following reflect survey findings of the reasons for which individuals serve on a board EXCEPT

The percentage of large U.S.corporations using nominating committees to identify potential new directors is approximately

For many large corporations the typical strategic planning staff has just fewer than how many people?

The average board member of a U.S.Fortune 500 firm serves on ________ board(s).

The lowest degree of involvement for a board of directors is the catalyst level of interaction.

A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with

The role of the board of directors in the strategic management of the corporation is likely to

According to the text,one of the primary responsibilities of top management in strategic management is

According to theory, directors tend to identify with the corporation and its success.

The relationship among the board of directors,top management,and shareholders is referred to as

A minority percentage of large corporations in the Americas and Europe may keep the firm's recently retired CEO on the board after retirement since there is a greater likelihood of a conflict of interest and less objectivity.

The New York Stock Exchange (NYSE) requires corporations to have

Generally,the smaller the corporation,the less active is its board of directors.

When a board of directors is involved to a limited degree in the performance or review of selected key decisions,indicators,or programs of management,the degree of involvement is referred to as

By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.

Which of the following statements is not true regarding the board of directors?

Codetermination

What are the responsibilities of the board of directors?

Outside directors are defined as

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

A study by Korn/Ferry found that ________ of U.S.boards of directors had at least one ethnic minority member in 2007.

All of the following reflect survey findings of the reasons for which individuals serve on a board EXCEPT

The percentage of large U.S.corporations using nominating committees to identify potential new directors is approximately

For many large corporations the typical strategic planning staff has just fewer than how many people?

The average board member of a U.S.Fortune 500 firm serves on ________ board(s).

The lowest degree of involvement for a board of directors is the catalyst level of interaction.

A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with

The role of the board of directors in the strategic management of the corporation is likely to

According to the text,one of the primary responsibilities of top management in strategic management is

According to ________ theory,________ directors tend to identify with the corporation and its success.

The relationship among the board of directors,top management,and shareholders is referred to as

A minority percentage of large corporations in the Americas and Europe may keep the firm's recently retired CEO on the board after retirement since there is a greater likelihood of a conflict of interest and less objectivity.

The New York Stock Exchange (NYSE) requires corporations to have

Generally,the smaller the corporation,the less active is its board of directors.

When a board of directors is involved to a limited degree in the performance or review of selected key decisions,indicators,or programs of management,the degree of involvement is referred to as

By 2012,56% of the S&P 500 boards had split the role of chairperson and CEO.

Which of the following statements is not true regarding the board of directors?

Codetermination

What are the responsibilities of the board of directors?

Outside directors are defined as

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

According to theory, directors tend to identify with the corporation and its success.