Question 1

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 B

Question 2

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 A

Question 3

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 E

Question 4

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 5

Which of the following is true about culture?

Accepted Answer

A)  Culture increases agency costs
B)  Culture reduces bargaining costs
C)  Culture reduces transactions costs
D)  Culture increases economic costs
E)  culture has no effect on costs

Question 6

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 7

Which of the following refers to when a firm with a patent uses its market power to set a high price - cost margin?

Accepted Answer

A)  Cost power
B)  Pricing power
C)  Legal power
D)  Limiting power
E)  Structural power

Question 8

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 9

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 10

Which best decribes a firm's culture?

Accepted Answer

A)  The accumulation of power is helpful when the firm's environment is relatively stable
B)  Values,beliefs,and norms of behavior shared by a firm's members that influence employee preferences and behaviors
C)  Institutional logics are coveted by firms (not taken for granted) 
D)  If firms share an institutional logic,the logic provides a basis for relative advantage among firms
E)  Institutional logics are valuable because they raise the costs for firms adapting to their environments

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 non-contractual exchange relationships?

Accepted Answer

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

Question 12

What aspect(s)of internal context are important in situations of chronic goal conflict?

Accepted Answer

A)  Formal authority
B)  Formal controls
C)  Contracts
D)  Power and culture
E)  Exclusive dealings

Question 13

Which of the following is the most visible example of a firm's social context?

Accepted Answer

A)  Employment practices
B)  Contracting
C)  Regulation
D)  Entry-deterring behaviors
E)  Formal controls

Question 14

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 15

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

Question 16

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 17

Individuals and firms that seek to gain power by reducing dependence on other actors while increasing the dependence of others on themselves are creating which of the following?

Accepted Answer

A)  Implicit dependence
B)  Explicit dependence
C)  Resource dependence
D)  Formal Dependence
E)  Absolute dependence

Question 18

Which one of the following terms describes relationships in social networks in which one actor is the critical link between individuals or entire groups?

Accepted Answer

A)  Structural hole
B)  Missing link
C)  Social connection
D)  Network connection
E)  Network link

Question 19

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 20

Which of the following terms is not the exercise or use of power by an individual?

Accepted Answer

A)  Control
B)  Influence
C)  Culture
D)  a and b
E)  a and c

Exam 14: Environment, Power, and Culture