Question 1

A new trend in board recruiting focuses more on

Accepted Answer

A) networking skills. 
B) experience than title. 
C) business school professors. 
D) foreign investors. 
A) networking skills. 
B) experience than title. 
C) business school professors. 
D) foreign investors.

Question 2

The purpose of corporate governance is a direct outgrowth of the question of legitimacy.

Accepted Answer

A) True 
 B)False

Question 3

Penalties under the Sarbanes-Oxley Act can include fines and prison terms.

Accepted Answer

A) True 
 B)False

Question 4

Employees are the people hired by the company to

Accepted Answer

A) oversee management. 
B) work with the board to keep management in line. 
C) do the actual work of operating the company. 
D) set the course for the company to follow. 
A) oversee management. 
B) work with the board to keep management in line. 
C) do the actual work of operating the company. 
D) set the course for the company to follow.

Question 5

The principal responsibilities of the audit committee are to

Accepted Answer

A) interview auditing firms to do the company audit. 
B) negotiate with the Internal Revenue Service in the event of a tax audit. 
C) ensure that published financial statements are not misleading. 
D) hire the Chief Financial Officer (CFO)and monitor that person's work. 
A) interview auditing firms to do the company audit. 
B) negotiate with the Internal Revenue Service in the event of a tax audit. 
C) ensure that published financial statements are not misleading. 
D) hire the Chief Financial Officer (CFO)and monitor that person's work.

Question 6

The minimum wage has grown faster than CEO salaries over the past decade.

Accepted Answer

A) True 
 B)False

Question 7

The Securities and Exchange Commission's Regulation FD is designed to

Accepted Answer

A) streamline the trading process. 
B) change stock trading prices to the decimal system. 
C) allow small investors to benefit from insider trading. 
D) limit the common practice of selective disclosure. 
A) streamline the trading process. 
B) change stock trading prices to the decimal system. 
C) allow small investors to benefit from insider trading. 
D) limit the common practice of selective disclosure.

Question 8

The primary purpose of the Sarbanes-Oxley Act is to

Accepted Answer

A) provide rules regulating the relationship between CEOs and boards. 
B) limit the power of corporate boards. 
C) restrict the flow of corporate money into politics. 
D) provide better protection for investors in public companies by improving the financial reporting of those companies. 
A) provide rules regulating the relationship between CEOs and boards. 
B) limit the power of corporate boards. 
C) restrict the flow of corporate money into politics. 
D) provide better protection for investors in public companies by improving the financial reporting of those companies.

Question 9

The dynamic process by which business seeks to perpetuate its acceptance is called

Accepted Answer

A) advertising. 
B) marketing. 
C) legitimation. 
D) embedding. 
A) advertising. 
B) marketing. 
C) legitimation. 
D) embedding.

Question 10

The board committee that is responsible for responding to social issues is the

Accepted Answer

A) ethics committee. 
B) public policy committee. 
C) community interface committee. 
D) rapid response committee. 
A) ethics committee. 
B) public policy committee. 
C) community interface committee. 
D) rapid response committee.

Question 11

The people hired by the board to run the company and operate it on a daily basis is

Accepted Answer

A) the employee council. 
B) management. 
C) administration. 
D) headquarters. 
A) the employee council. 
B) management. 
C) administration. 
D) headquarters.

Question 12

Executive Excess reports that in 2009 the ratio of CEO pay to average workers' pay was

Accepted Answer

A) 620 to 1. 
B) 319 to 1. 
C) 1,063 to 1. 
D) 18 to 1. 
A) 620 to 1. 
B) 319 to 1. 
C) 1,063 to 1. 
D) 18 to 1.

Question 13

The practice of obtaining critical information from within a company and then using that information for one's own financial gain is

Accepted Answer

A) arbitrage. 
B) programmed trading. 
C) insider trading. 
D) hedging. 
A) arbitrage. 
B) programmed trading. 
C) insider trading. 
D) hedging.

Question 14

The method by which shareholders elect boards of directors is known as

Accepted Answer

A) distributive voting. 
B) cumulative voting. 
C) the proxy process. 
D) direct balloting. 
A) distributive voting. 
B) cumulative voting. 
C) the proxy process. 
D) direct balloting.

Question 15

The micro level of legitimacy refers to achieving and maintaining legitimacy by conforming to societal expectations for

Accepted Answer

A) the business system as a whole. 
B) public policy partnerships. 
C) non-government organizations. 
D) individual businesses. 
A) the business system as a whole. 
B) public policy partnerships. 
C) non-government organizations. 
D) individual businesses.

Question 16

Provide a short answer to each of these questions.Be sure to fully explain your answer.
Summarize the responsibilities that corporations should have toward their shareholders.

Accepted Answer

Managers should be candid in their publi

Question 17

During the past forty years,corporate boards have become more diverse.

Accepted Answer

A) True 
 B)False

Question 18

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a method of obtaining the micro level of legitimacy?

Accepted Answer

A) A company adapts its operations to conform to prevailing standards. 
B) A company may seek to avoid detection that it is operating contrary to social norms. 
C) A company may attempt to changes the public's values and norms. 
D) A company may identify itself with other organization,people,or values. 
A) A company adapts its operations to conform to prevailing standards. 
B) A company may seek to avoid detection that it is operating contrary to social norms. 
C) A company may attempt to changes the public's values and norms. 
D) A company may identify itself with other organization,people,or values.

Question 20

The state-issued document that grants the corporation's right to exist and stipulating the basic terms of its existence is a(n)

Accepted Answer

A) certificate of legitimacy. 
B) occupancy permit. 
C) charter. 
D) article of incorporation. 
A) certificate of legitimacy. 
B) occupancy permit. 
C) charter. 
D) article of incorporation.

A new trend in board recruiting focuses more on

The purpose of corporate governance is a direct outgrowth of the question of legitimacy.

Penalties under the Sarbanes-Oxley Act can include fines and prison terms.

Employees are the people hired by the company to

The principal responsibilities of the audit committee are to

The minimum wage has grown faster than CEO salaries over the past decade.

The Securities and Exchange Commission's Regulation FD is designed to

The primary purpose of the Sarbanes-Oxley Act is to

The dynamic process by which business seeks to perpetuate its acceptance is called

The board committee that is responsible for responding to social issues is the

The people hired by the board to run the company and operate it on a daily basis is

Executive Excess reports that in 2009 the ratio of CEO pay to average workers' pay was

The practice of obtaining critical information from within a company and then using that information for one's own financial gain is

The method by which shareholders elect boards of directors is known as

The micro level of legitimacy refers to achieving and maintaining legitimacy by conforming to societal expectations for

Provide a short answer to each of these questions.Be sure to fully explain your answer. Summarize the responsibilities that corporations should have toward their shareholders.

During the past forty years,corporate boards have become more diverse.

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Which of the following is not a method of obtaining the micro level of legitimacy?

The state-issued document that grants the corporation's right to exist and stipulating the basic terms of its existence is a(n)

The Business and Society Relationship

Corporate Citizenship: Social Responsibility, Responsiveness, and Performance

The Stakeholder Approach to Business, Society, and Ethics

Strategic Management and Corporate Public Affairs

Issues Management and Crisis Management

Business Ethics Fundamentals

Personal and Organizational Ethics

Business Ethics and Technology

Ethical Issues in the Global Arena

Business,Government,and Regulation

Business Influence on Government and Public Policy

Consumer Stakeholders: Information Issues and Responses

Consumer Stakeholders: Product and Service Issues

The Natural Environment As Stakeholder

Business and Community Stakeholders

Employee Stakeholders and Workplace Issues

Employee Stakeholders: Privacy, safety, and Health

Employment Discrimination and Affirmative Action

Filters

Exam 4: Corporate Governance: Foundational Issues

A new trend in board recruiting focuses more on

The purpose of corporate governance is a direct outgrowth of the question of legitimacy.

Penalties under the Sarbanes-Oxley Act can include fines and prison terms.

Employees are the people hired by the company to

The principal responsibilities of the audit committee are to

The minimum wage has grown faster than CEO salaries over the past decade.

The Securities and Exchange Commission's Regulation FD is designed to

The primary purpose of the Sarbanes-Oxley Act is to

The dynamic process by which business seeks to perpetuate its acceptance is called

The board committee that is responsible for responding to social issues is the

The people hired by the board to run the company and operate it on a daily basis is

Executive Excess reports that in 2009 the ratio of CEO pay to average workers' pay was

The practice of obtaining critical information from within a company and then using that information for one's own financial gain is

The method by which shareholders elect boards of directors is known as

The micro level of legitimacy refers to achieving and maintaining legitimacy by conforming to societal expectations for

Provide a short answer to each of these questions.Be sure to fully explain your answer. Summarize the responsibilities that corporations should have toward their shareholders.

During the past forty years,corporate boards have become more diverse.

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors.

Which of the following is not a method of obtaining the micro level of legitimacy?

The state-issued document that grants the corporation's right to exist and stipulating the basic terms of its existence is a(n)

The Business and Society Relationship

Corporate Citizenship: Social Responsibility, Responsiveness, and Performance

The Stakeholder Approach to Business, Society, and Ethics

Strategic Management and Corporate Public Affairs

Issues Management and Crisis Management

Business Ethics Fundamentals

Personal and Organizational Ethics

Business Ethics and Technology

Ethical Issues in the Global Arena

Business,Government,and Regulation

Business Influence on Government and Public Policy

Consumer Stakeholders: Information Issues and Responses

Consumer Stakeholders: Product and Service Issues

The Natural Environment As Stakeholder

Business and Community Stakeholders

Employee Stakeholders and Workplace Issues

Employee Stakeholders: Privacy, safety, and Health

Employment Discrimination and Affirmative Action

Filters