Question 1

While 97% of large U.S.corporations now use nominating committees to identify potential directors,this practice is not as common in Europe.

Accepted Answer

A) True 
 B)False

Question 2

According to the text,most publicly owned large corporations today tend to have boards with what degree of involvement in the strategic management process?

Accepted Answer

A)  passive to minimal 
B)  minimal to nominal 
C)  rubber stamp type 
D)  nominal to active 
E)  active to catalyst 
A)  passive to minimal 
B)  minimal to nominal 
C)  rubber stamp type 
D)  nominal to active 
E)  active to catalyst

Question 3

Which of the following is not a task of the board of directors in strategic management?

Accepted Answer

A)  to monitor 
B)  to implement 
C)  to influence 
D)  to initiate and determine 
E)  to evaluate 
A)  to monitor 
B)  to implement 
C)  to influence 
D)  to initiate and determine 
E)  to evaluate

Question 4

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

Accepted Answer

A)  there is a negative correlation between CEO pay and company performance. 
B)  there is a positive correlation between CEO pay and company performance. 
C)  there is no correlation in the 100 S&P companies between CEO pay and company performance. 
D)  CEO pay packages were rejected by 90% of shareholders. 
E)  most compensation systems were aligned with the interests of shareholders. 
A)  there is a negative correlation between CEO pay and company performance. 
B)  there is a positive correlation between CEO pay and company performance. 
C)  there is no correlation in the 100 S&P companies between CEO pay and company performance. 
D)  CEO pay packages were rejected by 90% of shareholders. 
E)  most compensation systems were aligned with the interests of shareholders.

Question 5

Which of the following is not a key characteristic of transformational executive leaders?

Accepted Answer

A)  The CEO presents a role for others to identify with and to follow. 
B)  The CEO communicates high performance standards for all employees. 
C)  The CEO demonstrates confidence in the employees' abilities to meet the expressed high standards. 
D)  The CEO energizes the board to formulate strategy. 
E)  The CEO articulates a strategic vision for the corporation. 
A)  The CEO presents a role for others to identify with and to follow. 
B)  The CEO communicates high performance standards for all employees. 
C)  The CEO demonstrates confidence in the employees' abilities to meet the expressed high standards. 
D)  The CEO energizes the board to formulate strategy. 
E)  The CEO articulates a strategic vision for the corporation.

Question 6

A survey of directors of U.S.corporations found that the main reason individuals serve on a board is for the compensation.

Accepted Answer

A) True 
 B)False

Question 7

The concept of the lead director originated in

Accepted Answer

A)  the United Kingdom. 
B)  the United States. 
C)  France. 
D)  Sweden. 
E)  Germany. 
A)  the United Kingdom. 
B)  the United States. 
C)  France. 
D)  Sweden. 
E)  Germany.

Question 8

The ________ boards typically never initiate or determine strategy unless a crisis occurs.

Accepted Answer

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

Question 9

The Sarbanes-Oxley Act was designed to protect

Accepted Answer

A)  retired workers from losing their pensions. 
B)  CEOs from losing their golden parachutes. 
C)  CEO salary increases. 
D)  shareholders from the excesses and failed oversight of firms. 
E)  corporations from misguided whistleblowers. 
A)  retired workers from losing their pensions. 
B)  CEOs from losing their golden parachutes. 
C)  CEO salary increases. 
D)  shareholders from the excesses and failed oversight of firms. 
E)  corporations from misguided whistleblowers.

Question 10

Sixty-six percent of the outstanding stock in the largest U.S.and UK corporations is now owned by

Accepted Answer

A)  family directors. 
B)  affiliated directors. 
C)  institutional investors. 
D)  retired directors. 
E)  management directors. 
A)  family directors. 
B)  affiliated directors. 
C)  institutional investors. 
D)  retired directors. 
E)  management directors.

Question 11

From the perspective of the public,the primary job of the board of directors is

Accepted Answer

A)  to lend credence to the decisions of the executive committee. 
B)  dictated solely by legal requirements. 
C)  to act as representatives for public identification. 
D)  to closely monitor the actions of management. 
E)  insulated from legal judgments because management actually makes the decisions. 
A)  to lend credence to the decisions of the executive committee. 
B)  dictated solely by legal requirements. 
C)  to act as representatives for public identification. 
D)  to closely monitor the actions of management. 
E)  insulated from legal judgments because management actually makes the decisions.

Question 12

Explain the continuum of board involvement.

Accepted Answer

The board of directors' continuum reflec

Question 13

Contrast agency theory and stewardship theory.

Accepted Answer

Agency theory states that problems arise

Question 14

The confidence levels of executive leaders may blind them to information that is contrary to a decided course of action; this may help to understand why overconfident CEOs are more likely to conduct mergers and acquisitions.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following regions is the most globalized region of the world in terms of boards of directors with most companies having one or more non-national directors?

Accepted Answer

A)  Asia 
B)  Middle East 
C)  North American 
D)  Pacific Rim 
E)  Europe 
A)  Asia 
B)  Middle East 
C)  North American 
D)  Pacific Rim 
E)  Europe

Question 16

All of the following are true of the dual chair/CEO position EXCEPT

Accepted Answer

A)  it is being increasingly criticized because of the potential for conflict of interest. 
B)  it endangers the ability to properly oversee top management. 
C)  it is separated by law in Germany, the Netherlands, and Finland. 
D)  it is more popular in American corporations than firms in the United Kingdom. 
E)  firms with a dual chair/CEO role have significantly better stock performance. 
A)  it is being increasingly criticized because of the potential for conflict of interest. 
B)  it endangers the ability to properly oversee top management. 
C)  it is separated by law in Germany, the Netherlands, and Finland. 
D)  it is more popular in American corporations than firms in the United Kingdom. 
E)  firms with a dual chair/CEO role have significantly better stock performance.

Question 17

Under what circumstances does a DIRECT 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)  occurs when two firms share a director or when an executive of one firm sits on the 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)  occurs when two firms share a director or when an executive of one firm sits on the 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

Question 18

The term "corporate governance" refers to the relationship among the board of directors,top management,and the shareholders in determining the direction and performance of the corporation.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not one of the four major issues researched by the S&P Corporate Governance Scoring System?

Accepted Answer

A)  ownership structure and influence 
B)  research and development initiatives 
C)  financial stakeholder rights and relations 
D)  financial transparency and information disclosures 
E)  board structure and processes 
A)  ownership structure and influence 
B)  research and development initiatives 
C)  financial stakeholder rights and relations 
D)  financial transparency and information disclosures 
E)  board structure and processes

While 97% of large U.S.corporations now use nominating committees to identify potential directors,this practice is not as common in Europe.

According to the text,most publicly owned large corporations today tend to have boards with what degree of involvement in the strategic management process?

Which of the following is not a task of the board of directors in strategic management?

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

Which of the following is not a key characteristic of transformational executive leaders?

A survey of directors of U.S.corporations found that the main reason individuals serve on a board is for the compensation.

The concept of the lead director originated in

The ________ boards typically never initiate or determine strategy unless a crisis occurs.

The Sarbanes-Oxley Act was designed to protect

Sixty-six percent of the outstanding stock in the largest U.S.and UK corporations is now owned by

From the perspective of the public,the primary job of the board of directors is

Explain the continuum of board involvement.

Contrast agency theory and stewardship theory.

The confidence levels of executive leaders may blind them to information that is contrary to a decided course of action; this may help to understand why overconfident CEOs are more likely to conduct mergers and acquisitions.

Which of the following regions is the most globalized region of the world in terms of boards of directors with most companies having one or more non-national directors?

All of the following are true of the dual chair/CEO position EXCEPT

Under what circumstances does a DIRECT interlocking directorate exist?

The term "corporate governance" refers to the relationship among the board of directors,top management,and the shareholders in determining the direction and performance of the corporation.

Which of the following is not one of the four major issues researched by the S&P Corporate Governance Scoring System?

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

While 97% of large U.S.corporations now use nominating committees to identify potential directors,this practice is not as common in Europe.

According to the text,most publicly owned large corporations today tend to have boards with what degree of involvement in the strategic management process?

Which of the following is not a task of the board of directors in strategic management?

When calculating a "deserved pay" for CEOs based upon earnings growth and shareholder return,financial research firm Obermatt found that

Which of the following is not a key characteristic of transformational executive leaders?

A survey of directors of U.S.corporations found that the main reason individuals serve on a board is for the compensation.

The concept of the lead director originated in

The ________ boards typically never initiate or determine strategy unless a crisis occurs.

The Sarbanes-Oxley Act was designed to protect

Sixty-six percent of the outstanding stock in the largest U.S.and UK corporations is now owned by

From the perspective of the public,the primary job of the board of directors is

Explain the continuum of board involvement.

Contrast agency theory and stewardship theory.

The confidence levels of executive leaders may blind them to information that is contrary to a decided course of action; this may help to understand why overconfident CEOs are more likely to conduct mergers and acquisitions.

Which of the following regions is the most globalized region of the world in terms of boards of directors with most companies having one or more non-national directors?

All of the following are true of the dual chair/CEO position EXCEPT

Under what circumstances does a DIRECT interlocking directorate exist?

The term "corporate governance" refers to the relationship among the board of directors,top management,and the shareholders in determining the direction and performance of the corporation.

Which of the following is not one of the four major issues researched by the S&P Corporate Governance Scoring System?

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