Question 1

Which of the following is an example of informal regulations with respect to a firm's social context?

Accepted Answer

A)  Contracting
B)  Employment practices
C)  Pricing
D)  Entry-deterring behaviors
E)  Cultural norms E

Question 2

Which of the following was not one of the power bases that Francis "Jack" Reith used to push the development of the 1957 Ford Mercury?

Accepted Answer

A)  He was a dynamic and charismatic leader
B)  He was intelligent and effective at persuading others
C)  He had a track record of success
D)  He had position power
E)  He threatened punishment to anyone who opposed the idea E

Question 3

What does Gary Miller identify as the focus for actors around which a consensus can form within an organization?

Accepted Answer

A)  Contracts
B)  Incentives
C)  Formal controls
D)  Norms and Social conventions (culture) 
E)  Exclusive deals D

Question 4

What term best describes a set of values,beliefs,and norms of behavior shared by a firm's members that influence employee preferences and behaviors?

Accepted Answer

A)  Codes
B)  Routines
C)  Culture
D)  Influence
E)  Mind-sets

Question 5

What technique did Google use to preserve its "evil-free" culture when going public with an initial public offering in 2004?

Accepted Answer

A)  Used an IPO underwriter
B)  Allow clients to purchase underpriced IPO shares
C)  Used a "Dutch auction"
D)  Committed to sell a certain number of shares at a set price
E)  Drastically underpriced its shares (by 200%)

Question 6

Which of the following statements is least true regarding the accumulation of power?

Accepted Answer

A)  The accumulation of power is helpful when there are high agency costs in coordinating among managers and lower-level workers
B)  The accumulation of power is helpful when the firm's environment is relatively stable
C)  The accumulation of power is harmful when there are high agency costs in coordinating among levels of upper management
D)  The accumulation of power is harmful when the firm's environment is relatively unstable
E)  The major purpose of corporate governance is not to reign in the accumulation of power by CEOs

Question 7

What does Chester Barnard mean when he uses the term zone of indifference?

Accepted Answer

A)  The set of issues over which the powerful individual with formal authority usually prevails
B)  The set of issues over which the powerful individual with reputation usually prevails
C)  The set of issues over which the powerful individual with knowledge usually prevails
D)  The set of issues over which the powerful individual with influence usually prevails
E)  The set of issues over which the powerful individual with image usually prevails

Question 8

Which of the following terms best describes a transfer between two or more parties or resources,or rights to control resources,which occurs outside the terms of a market context?

Accepted Answer

A)  Power exchange
B)  Social exchange
C)  Authority exchange
D)  Knowledge exchange
E)  Formal exchanges

Question 9

Which of the following statements is least true regarding the costs that regulation imposes on firms?

Accepted Answer

A)  Regulation costs include lower prices for goods that consumers pay
B)  Regulation costs include costs of compliance
C)  Regulation costs include increased business costs due to noncompliance
D)  Regulation costs include the costs of strategic options that must be forgone because of regulations
E)  Regulation costs include potential distortions to a market that may result from the imperfections of a given regulatory regime

Question 10

What is the source from which a person derives legitimate or formal power?

Accepted Answer

A)  Due to status
B)  Possession of specialized knowledge
C)  Ability to punish
D)  Ability to grant rewards
E)  Position within a hierarchy

Question 11

Which of the following terms best describes an individual actor's ability to accomplish his or her goals by using resources obtained through noncontractual exchange relationships?

Accepted Answer

A)  Power
B)  Authority
C)  Culture
D)  Influence
E)  Contracts

Question 12

What term does Ronald Burt use to describe a valued relationship between two unconnected parties with a strategy involving spanning a structural hole and bargaining with parties on either side for the most favorable terms?

Accepted Answer

A)  Mavens
B)  Nodes
C)  Second who benefits
D)  Tertius gaudens
E)  Brokers

Question 13

What term best refers to interrelated beliefs,values,material practices,and norms of behavior that exist in an industry at any given time?

Accepted Answer

A)  Institutional elements
B)  Institutional standards
C)  Institutional influences
D)  Institutional logics
E)  Institutional ideas

Question 14

Which of the following terms best refers to the exercise or use of power in a given situation by an individual?

Accepted Answer

A)  Control
B)  Authority
C)  Culture
D)  Influence
E)  Contracts

Question 15

What term does Ronald Burt use to describe relationships in social networks in which one actor is the critical link between individuals or entire groups of actors?

Accepted Answer

A)  Mavens
B)  Nodes
C)  Structural holes
D)  Tertius gaudens
E)  Brokers

Question 16

What does Andrew Pettigrew identify to be the key issue that plagued Imperial Chemical Industries that stymied the organizational adaptation that was necessary to keep it successful in the 1970s?

Accepted Answer

A)  Contracts
B)  Cultural inertia
C)  Pricing
D)  Entry-deterring behaviors
E)  Employment practices

Question 17

What term best describes exchanges of goods,services,or promises on terms that take place outside of traditional economic markets and are not enforceable in court?

Accepted Answer

A)  Handshake agreement
B)  Noncontractual exchange relationship
C)  Internal context
D)  External context
E)  Exclusive dealing

Question 18

Which of the following is most true regarding the strategic value of institutional logics?

Accepted Answer

A)  When institutional logics are stable, they have the most strategic importance
B)  Institutional logics are coveted by firms (not taken for granted) 
C)  If firms share an institutional logic, the logic provides a basis for relative advantage among firms
D)  Institutional logics are valuable because they raise the costs for firms adapting to their environments
E)  Competitive advantage must come on some other dimension than institutional logic if firms share that institutional logic

Question 19

Which of the following terms best describes ability that stems from the explicit contractual decision-making and dispute-resolution rights that a firm (or some other source)grants to an individual?

Accepted Answer

A)  Power
B)  Authority
C)  Culture
D)  Influence
E)  Contracts

Question 20

Which of the following statements is least true regarding institutions?

Accepted Answer

A)  Institutions can involve formal regulation of firms by governmental agencies
B)  Institutions can involve formal regulation of firms by nongovernmental regulatory organizations
C)  Institutions can be less formal and involve ongoing power/dependence relationships between firms
D)  Institutional arrangements may embody general patterns of values, beliefs, ad behavioral norms that motivate and stabilize affected firms
E)  None of the above

Exam 18: Environment, power, and Culture

Which of the following is an example of informal regulations with respect to a firm's social context?

Which of the following was not one of the power bases that Francis "Jack" Reith used to push the development of the 1957 Ford Mercury?

What does Gary Miller identify as the focus for actors around which a consensus can form within an organization?

What term best describes a set of values,beliefs,and norms of behavior shared by a firm's members that influence employee preferences and behaviors?

What technique did Google use to preserve its "evil-free" culture when going public with an initial public offering in 2004?

Which of the following statements is least true regarding the accumulation of power?

What does Chester Barnard mean when he uses the term zone of indifference?

Which of the following terms best describes a transfer between two or more parties or resources,or rights to control resources,which occurs outside the terms of a market context?

Which of the following statements is least true regarding the costs that regulation imposes on firms?

What is the source from which a person derives legitimate or formal power?

Which of the following terms best describes an individual actor's ability to accomplish his or her goals by using resources obtained through noncontractual exchange relationships?

What term does Ronald Burt use to describe a valued relationship between two unconnected parties with a strategy involving spanning a structural hole and bargaining with parties on either side for the most favorable terms?

What term best refers to interrelated beliefs,values,material practices,and norms of behavior that exist in an industry at any given time?

Which of the following terms best refers to the exercise or use of power in a given situation by an individual?

What term does Ronald Burt use to describe relationships in social networks in which one actor is the critical link between individuals or entire groups of actors?

What does Andrew Pettigrew identify to be the key issue that plagued Imperial Chemical Industries that stymied the organizational adaptation that was necessary to keep it successful in the 1970s?

What term best describes exchanges of goods,services,or promises on terms that take place outside of traditional economic markets and are not enforceable in court?

Which of the following is most true regarding the strategic value of institutional logics?

Which of the following terms best describes ability that stems from the explicit contractual decision-making and dispute-resolution rights that a firm (or some other source) grants to an individual?

Which of the following statements is least true regarding institutions?