Exam 13: Corporate Governance and Ethics

Zygaton Corp.is a firm that offers its customers financial services.Which of the following members of its board of directors should ideally bring vast knowledge and a new perspective in order to ensure that the firm's strategy will serve the financial interests of the shareholders?

Autumn Inc.is a company that functions on its own.It has the right to enter into contracts, hire employees, and also pay taxes.The shareholders of the company are entitled to its profits.Autumn Inc.is an example of a _____.

Tinos Inc.is a company that manufactures toys.Which of the following would be its primary stakeholder?

Which of the following statements is true of the agency problem facing the modern public corporation?

Which of the following statements is true of the intrinsic stakeholder model of business management?

Pick N Shop Inc.operates a chain of supermarkets.The company offers a bonus of $500 to its sales representatives if they can sell products worth $5,000 per month.It also offers bonuses and other benefits to its employees and managers.By offering such bonuses, Pick N Shop Inc.is primarily trying to avoid a(n) _____.

Explain with examples how the engagement of a company with its key stakeholders can affect its overall performance and competitive advantage.

Raj, a student of business management, claims that the shareholder primacy model is not a good model of business management.Which of the following statements should he use in order to best support his claim?

Salma owns stocks of an e-commerce business.In exchange for the money she has invested, she has received two property rights from the business.Which of the following is most likely to be one of the property rights given to her?

Briefly describe agency problems.How can they destroy value in an organization?

Yellow Moon Inc.is a company that manufactures consumer electronics.Its investors will be primarily affected by the business through the:

Agrolus Corp.is a company that manufactures fertilizers used in farming.Its customers consist of farmers who purchase its products.Its employees will be affected by the business through the:

Chang, the founder of a multinational corporation, believes that his business should mainly focus on the benefit of those people who own its stock.In this scenario, he most likely follows _____, a model of business management.

Peach Corp.operates a chain of supermarkets.The managers and employees of the company have been on strike for months due to their differences with its owners.As a result, the share price of the company has fallen to historic low.Globe Investments decides to purchase a majority of the shares of Peach Corp., confident that it can manage the company better.Globe Investments makes a public offer to purchase the shares of the investors who are dissatisfied with the performance of Peach Corp.The offer made by Globe Investments can be termed as a(n) _____.

Define ethical behavior.

Which of the following statements is true of an individual proprietorship?

Which of the following statements is true of corporate culture?

Javier is the shareholder of a cellphone manufacturing company.Which of the following statements about him is true?

Explain the difference between the shareholder primacy model and the stakeholder model.

DigiGo Inc.is a multinational corporation that manufactures and sells home appliances.Who among the following are its principals?