Exam 12: Organizations in Concept and Practice

A corporation's shareholders are its:

Explain the reasons for separating ownership and management in all large organizations.

When a large shareholder or a group solicits vote for a slate of directors that it has proposed as an alternative to candidates endorsed by the current board, a(n) _____ takes place.

When a single individual performs all the steps involved in the production process he/she incurs:

Which of the following is an advantage of having centralized ownership and responsibility for capital goods?

In business organizations, the specialization of workers and their assignments to different tasks is called:

Risk-averse people prefer to hold assets whose returns are positively correlated.

In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a provider of capital, and a residual claimant?

The separation of corporate ownership and control removes most executive decisions from shareholder scrutiny, but offers an efficient division of labor between persons with differing skills, goals, and wealth.

A person acting as a supervisor as well as a residual claimant:

A person who performs supervisory activities will also be a _____ if she/he is financially responsible for investment and other contracted decisions.

It is possible for a team member to monitor the activities of all other team members without affecting his/her own productivity.

If a market is informationally efficient, the current price of a corporation's common stock shares is the best predictor of its future performance because it incorporates all of the information currently known about its prospects.

Unless the specialists involved in the different stages of production coordinate among themselves, specialization and division of labor can result in unused capacities and investment mismatches.

Which of the following properties is common to a partnership business?

When can proxy fights take place in a corporation?

Partnership can function as an efficient organizational form when partners have similar backgrounds and skills, and each of their income is largely determined by individual effort.

_____ are legal and contractual mechanism[s] for creating and operating a business for profit, using capital from investors that will be managed on their behalf by directors and officers.

What is a hierarchy?

Which of the following is an example of an institutional investor?