Question 1

A highly involved board does all of the following EXCEPT

Accepted Answer

A)  tends to be very active. 
B)  provides advice when necessary. 
C)  keeps management alert. 
D)  takes their tasks of initiating and determining strategy very seriously. 
E)  manage the everyday operations of the organization.

Question 2

Which country pioneered the use of worker participation on corporate boards?

Accepted Answer

A)  England 
B)  France 
C)  Sweden 
D)  Japan 
E)  Germany

Question 3

Explain the difference between a direct and indirect interlocking directorate.

Accepted Answer

The answer of Explain the difference between a direct and...

Question 4

The percentage of directors of small,publicly held U.S.corporations who are outsiders is approximately

Accepted Answer

A)  2 - 12%. 
B)  20 - 40%. 
C)  40 - 60%. 
D)  60 - 80%. 
E)  98 - 100%.

Question 5

What percent of boards now have truly independent chairs?

Accepted Answer

A)  less than 10%. 
B)  approximately 30%. 
C)  approximately 50%. 
D)  approximately 75%. 
E)  over 90%.

Question 6

Executive leadership is the directing of activities toward the accomplishment of corporate objectives.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a trend in corporate governance expected to continue?

Accepted Answer

A)  Institutional investors are becoming active on boards. 
B)  Boards are getting more involved in shaping company strategy. 
C)  Boards are getting larger. 
D)  Shareholders are demanding directors and top managers own more than token amounts of stock in the corporation. 
E)  Outside directors are taking charge of annual CEO evaluations.

Question 8

The board of directors has an obligation to approve all decisions that might affect the long-run performance of the corporation.

Accepted Answer

A) True 
 B)False

Question 9

Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation and its success.

Accepted Answer

A) True 
 B)False

Question 10

The requirements of a board of directors vary significantly by country and by state; however,there is a developing consensus as to what the major responsibilities should be.Which of the following is not one of the responsibilities?

Accepted Answer

A)  effective board leadership including the processes, makeup and output of the board 
B)  strategy of the organization 
C)  risk vs. initiative and the overall risk profile of the organization 
D)  becoming directly involved in managerial decisions 
E)  sustainability

Question 11

Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society.

Accepted Answer

A) True 
 B)False

Question 12

A lead director

Accepted Answer

A)  has not been a popular approach in the United Kingdom. 
B)  creates a balance of power when the CEO is also Chair of the Board. 
C)  has lost popularity in the United States since 2003. 
D)  has no involvement in the CEO's evaluation. 
E)  totally replaces the CEO position.

Question 13

The average large,publicly held U.S.corporation has around

Accepted Answer

A)  7 directors. 
B)  10 directors. 
C)  19 directors. 
D)  25 directors. 
E)  30 directors.

Question 14

Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and movement by providing a vision for that change are known as

Accepted Answer

A)  transformational leaders. 
B)  strategic implementers. 
C)  strategists. 
D)  corporate governors. 
E)  directors.

Question 15

The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called

Accepted Answer

A)  codetermination. 
B)  agency theory. 
C)  interlocking management theory. 
D)  strategic leadership theory. 
E)  ownership theory.

Question 16

Jeff Bezos,CEO of Amazon.com,uses the S team (senior management) to engage in continuous strategic planning.

Accepted Answer

A) True 
 B)False

Question 17

Explain the impact of the Sarbanes-Oxley Act on corporate governance.

Accepted Answer

The answer of Explain the impact of the Sarbanes-Oxley Act...

Question 18

Codetermination has been used in Germany since the 1950s,but has not been used in the United States.

Accepted Answer

A) True 
 B)False

Question 19

More than ________ of outside directors surveyed said that they had been named as part of a lawsuit against the corporation.

Accepted Answer

A)  40% 
B)  50% 
C)  60% 
D)  70% 
E)  80%

Question 20

Which of the following is not descriptive of interlocking directorates?

Accepted Answer

A)  Interlocking directorates occur because large firms have a large impact on other corporations. 
B)  Interlocking directorates are more common in small, family-owned companies. 
C)  Interlocking directorates are a useful method for gaining inside information about an uncertain environment. 
D)  Interlocking directorates occur in about 20% of the 1000 largest U.S. firms. 
E)  Interlocking directorates provide objective expertise about a firm's strategy.

Exam 2: Corporate Governance

A highly involved board does all of the following EXCEPT

Which country pioneered the use of worker participation on corporate boards?

Explain the difference between a direct and indirect interlocking directorate.

The percentage of directors of small,publicly held U.S.corporations who are outsiders is approximately

What percent of boards now have truly independent chairs?

Executive leadership is the directing of activities toward the accomplishment of corporate objectives.

Which of the following is not a trend in corporate governance expected to continue?

The board of directors has an obligation to approve all decisions that might affect the long-run performance of the corporation.

Stewardship theory proposes insiders (senior leadership) tend to identify with the corporation and its success.

The requirements of a board of directors vary significantly by country and by state; however,there is a developing consensus as to what the major responsibilities should be.Which of the following is not one of the responsibilities?

Society increasingly expects corporate boards to balance the economic goal of profitability with the social needs of society.

A lead director

The average large,publicly held U.S.corporation has around

Individuals such as Phil Knight at Nike and Steve Jobs at Apple who energized their companies and provided change and movement by providing a vision for that change are known as

The theory which states that problems arise in corporations because top management no longer is willing to bear the brunt of their decisions unless they own a substantial amount of stock in the corporation is called

Jeff Bezos,CEO of Amazon.com,uses the S team (senior management) to engage in continuous strategic planning.

Explain the impact of the Sarbanes-Oxley Act on corporate governance.

Codetermination has been used in Germany since the 1950s,but has not been used in the United States.

More than ________ of outside directors surveyed said that they had been named as part of a lawsuit against the corporation.

Which of the following is not descriptive of interlocking directorates?