Question 1

Business ethics is concerned with

Accepted Answer

A) teaching people the difference between right and wrong. 
B) ensuring that managers weigh the ethical implications of their decisions. 
C) ensuring that employees obey the law. 
D) replacing economics with social responsibility in the decision-making process. 
E) increasing profits. 
A) teaching people the difference between right and wrong. 
B) ensuring that managers weigh the ethical implications of their decisions. 
C) ensuring that employees obey the law. 
D) replacing economics with social responsibility in the decision-making process. 
E) increasing profits.

Question 2

Ethics may best be thought of as

Accepted Answer

A) legal prescriptions for conduct. 
B) standards of right and wrong. 
C) cultural mores. 
D) desirable but unattainable behaviors. 
E) all of these choices. 
A) legal prescriptions for conduct. 
B) standards of right and wrong. 
C) cultural mores. 
D) desirable but unattainable behaviors. 
E) all of these choices.

Question 3

Why are some managers thought to engage in empire building?

Accepted Answer

A) Growth results in large company size,and large size satisfies managers' needs for power,status,income,and job security. 
B) The pursuit of growth represents the best way of maximizing the long-run profitability of the company. 
C) Growth is designed to increase market share,which in turn increases company profits. 
D) Companies that do not grow stagnate. 
E) Stockholders would rather invest in large companies than in small ones. 
A) Growth results in large company size,and large size satisfies managers' needs for power,status,income,and job security. 
B) The pursuit of growth represents the best way of maximizing the long-run profitability of the company. 
C) Growth is designed to increase market share,which in turn increases company profits. 
D) Companies that do not grow stagnate. 
E) Stockholders would rather invest in large companies than in small ones.

Question 4

The takeover constraint

Accepted Answer

A) effectively limits the number of independent companies that a company can acquire. 
B) limits the degree to which managers can pursue strategies that are at variance with stockholder interests. 
C) is a theoretical construct that can be ignored in practice. 
D) limits the freedom that individual companies have to maximize their long-run return on investment. 
E) is imposed by corporate managers on errant business-level managers. 
A) effectively limits the number of independent companies that a company can acquire. 
B) limits the degree to which managers can pursue strategies that are at variance with stockholder interests. 
C) is a theoretical construct that can be ignored in practice. 
D) limits the freedom that individual companies have to maximize their long-run return on investment. 
E) is imposed by corporate managers on errant business-level managers.

Question 5

In the 1990s,Sotheby's and Christie's,the two largest fine-art auction houses in the world,faced several class-action lawsuits alleging collusion between the two houses to fix prices.

Accepted Answer

A) True 
 B)False

Question 6

A company's stakeholders include which of the following?

Accepted Answer

A) Stockholders 
B) Creditors 
C) Employees 
D) Customers 
E) All of these choices 
A) Stockholders 
B) Creditors 
C) Employees 
D) Customers 
E) All of these choices

Question 7

Consider a national chain of company-owned fast-food restaurants.For this firm,list the important stakeholders.Then describe how each stakeholder group can affect the firm's profitability.

Accepted Answer

Internal stakeholders of a national chai

Question 8

Which of the following is not an accurate statement about current levels of pay for CEOs of U.S.-based firms?

Accepted Answer

A) CEO pay since 2000 is at a historically high level. 
B) Most of CEO pay is in the form of salary. 
C) CEO compensation is not closely tied to corporate performance in most firms. 
D) CEO pay is rising more rapidly than pay for other workers. 
E) The level of CEO compensation is determined by the corporate board of directors. 
A) CEO pay since 2000 is at a historically high level. 
B) Most of CEO pay is in the form of salary. 
C) CEO compensation is not closely tied to corporate performance in most firms. 
D) CEO pay is rising more rapidly than pay for other workers. 
E) The level of CEO compensation is determined by the corporate board of directors.

Question 9

According to an SEC investigation,Computer Associates,one of the world's largest software companies,backdated contracts to boost the company's reported revenues.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following stakeholders might not want a company to maximize its long-run profitability and profit growth?

Accepted Answer

A) Suppliers 
B) Creditors 
C) Customers 
D) Suppliers and customers 
E) Suppliers and creditors 
A) Suppliers 
B) Creditors 
C) Customers 
D) Suppliers and customers 
E) Suppliers and creditors

Question 11

Which of the following is not a reason why the board of directors may act as the guardian of stockholder interests within a company?

Accepted Answer

A) Board members are directly elected by stockholders. 
B) The board is positioned at the apex of decision making within a company and is thus in a good position to monitor strategies. 
C) Board members can be held legally accountable for the actions of the company. 
D) Many board members are the nominees of the company CEO. 
E) The board has legal authority to hire,fire,and compensate senior executives. 
A) Board members are directly elected by stockholders. 
B) The board is positioned at the apex of decision making within a company and is thus in a good position to monitor strategies. 
C) Board members can be held legally accountable for the actions of the company. 
D) Many board members are the nominees of the company CEO. 
E) The board has legal authority to hire,fire,and compensate senior executives.

Question 12

Thinking of it in its simplest terms,the balanced scorecard approach may be viewed as the

Accepted Answer

A) dashboard on an automobile. 
B) touchpad on a cell phone. 
C) keyboard for a computer. 
D) dials and indicators in an airplane cockpit. 
E) none of these choices. 
A) dashboard on an automobile. 
B) touchpad on a cell phone. 
C) keyboard for a computer. 
D) dials and indicators in an airplane cockpit. 
E) none of these choices.

Question 13

Over the past decade,maximizing returns to shareholders has

Accepted Answer

A) become less important. 
B) taken on added importance. 
C) remained the same as in the past. 
D) been a minor corporate goal. 
E) none of these choices. 
A) become less important. 
B) taken on added importance. 
C) remained the same as in the past. 
D) been a minor corporate goal. 
E) none of these choices.

Question 14

The purpose of governance mechanisms in corporations is to

Accepted Answer

A) keep employees in line. 
B) reduce the scope and frequency of the agency problem. 
C) satisfy the requirements of the Securities and Exchange Commission (SE
C) . 
D) limit corporate growth to manageable rates. 
E) none of these choices. 
A) keep employees in line. 
B) reduce the scope and frequency of the agency problem. 
C) satisfy the requirements of the Securities and Exchange Commission (SE
C) . 
D) limit corporate growth to manageable rates. 
E) none of these choices.

Question 15

If a company fails to take stakeholder claims into account,stakeholders may withdraw their support.

Accepted Answer

A) True 
 B)False

Question 16

Stock-based compensation schemes for senior executives are designed to align the interests of managers with those of stockholders.

Accepted Answer

A) True 
 B)False

Question 17

Stockholders receive a return on their investment in a company's stock from dividend payments and capital appreciation.

Accepted Answer

A) True 
 B)False

Question 18

In applying agency theory to problems of corporate management,the principals are the

Accepted Answer

A) employees. 
B) CEO. 
C) top management team. 
D) CEO and the top management team. 
E) stockholders. 
A) employees. 
B) CEO. 
C) top management team. 
D) CEO and the top management team. 
E) stockholders.

Question 19

Through stock ownership plans,stockholders receive employee benefits.

Accepted Answer

A) True 
 B)False

Question 20

Institutional investors are becoming more aggressive in exerting their power with the board by

Accepted Answer

A) boycotting stockholder meetings. 
B) pursuing leveraged buyouts. 
C) selling their shares when they do not agree with company actions. 
D) defining a company's business for them. 
E) pushing for more effective governance structures. 
A) boycotting stockholder meetings. 
B) pursuing leveraged buyouts. 
C) selling their shares when they do not agree with company actions. 
D) defining a company's business for them. 
E) pushing for more effective governance structures.

Business ethics is concerned with

Ethics may best be thought of as

Why are some managers thought to engage in empire building?

The takeover constraint

In the 1990s,Sotheby's and Christie's,the two largest fine-art auction houses in the world,faced several class-action lawsuits alleging collusion between the two houses to fix prices.

A company's stakeholders include which of the following?

Consider a national chain of company-owned fast-food restaurants.For this firm,list the important stakeholders.Then describe how each stakeholder group can affect the firm's profitability.

Which of the following is not an accurate statement about current levels of pay for CEOs of U.S.-based firms?

According to an SEC investigation,Computer Associates,one of the world's largest software companies,backdated contracts to boost the company's reported revenues.

Which of the following stakeholders might not want a company to maximize its long-run profitability and profit growth?

Which of the following is not a reason why the board of directors may act as the guardian of stockholder interests within a company?

Thinking of it in its simplest terms,the balanced scorecard approach may be viewed as the

Over the past decade,maximizing returns to shareholders has

The purpose of governance mechanisms in corporations is to

If a company fails to take stakeholder claims into account,stakeholders may withdraw their support.

Stock-based compensation schemes for senior executives are designed to align the interests of managers with those of stockholders.

Stockholders receive a return on their investment in a company's stock from dividend payments and capital appreciation.

In applying agency theory to problems of corporate management,the principals are the

Through stock ownership plans,stockholders receive employee benefits.

Institutional investors are becoming more aggressive in exerting their power with the board by

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters

Exam 11: Corporate Performance, Governance, and Business Ethics

Business ethics is concerned with

Ethics may best be thought of as

Why are some managers thought to engage in empire building?

The takeover constraint

In the 1990s,Sotheby's and Christie's,the two largest fine-art auction houses in the world,faced several class-action lawsuits alleging collusion between the two houses to fix prices.

A company's stakeholders include which of the following?

Consider a national chain of company-owned fast-food restaurants.For this firm,list the important stakeholders.Then describe how each stakeholder group can affect the firm's profitability.

Which of the following is not an accurate statement about current levels of pay for CEOs of U.S.-based firms?

According to an SEC investigation,Computer Associates,one of the world's largest software companies,backdated contracts to boost the company's reported revenues.

Which of the following stakeholders might not want a company to maximize its long-run profitability and profit growth?

Which of the following is not a reason why the board of directors may act as the guardian of stockholder interests within a company?

Thinking of it in its simplest terms,the balanced scorecard approach may be viewed as the

Over the past decade,maximizing returns to shareholders has

The purpose of governance mechanisms in corporations is to

If a company fails to take stakeholder claims into account,stakeholders may withdraw their support.

Stock-based compensation schemes for senior executives are designed to align the interests of managers with those of stockholders.

Stockholders receive a return on their investment in a company's stock from dividend payments and capital appreciation.

In applying agency theory to problems of corporate management,the principals are the

Through stock ownership plans,stockholders receive employee benefits.

Institutional investors are becoming more aggressive in exerting their power with the board by

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Implementing Strategy in Companies That Compete in a Single Industry

Implementing Strategy in Companies That Compete Across Industries and Countries

Filters