Question 1

The best way to minimize improper and unethical conduct is to ________ and ________.

Accepted Answer

A)   set boundaries; constraints
B)   establish standards; guidelines
C)   develop policies; regulations
D)   design sanctions; guidelinesE) B) and C)
F) A) and D)

Question 2

In single-loop learning, the assumptions, premises, goals, and strategies of the organization are continuously monitored, tested, and reviewed.

Accepted Answer

A) True 
 B)False

Question 3

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests, like increasing long-term returns.

Accepted Answer

A) True 
 B)False

Question 4

In 2016, John Stumpf, CEO of Wells Fargo, was forced to resign after both stakeholder and government scrutiny of the practices of the firm. Firm management had instituted very aggressive sales goals for employees, leading employees to create sham accounts using the names and money of the real customers of the bank. This is an example of ________ corporate governance.

Accepted Answer

A)   sound
B)   controlled
C)   flawed
D)   guidedE) A) and B)
F) A) and D)

Question 5

Which of the following statements about action plans is true?

Accepted Answer

A)   Action plans should permit a degree of autonomy to managers and not be constrained by budgets.
B)   Action plans must be specific so that managers have a clear understanding of the resource requirements necessary to implement the plan.
C)   Action plans should not be constrained by a time frame in order to allow for modification.
D)   Action plans should hold employees accountable for the implementation.E) B) and D)
F) All of the above

Question 6

Individual and institutional shareholders have the same rights that include all the following except

Accepted Answer

A)   right to sell stock.
B)   right to vote the proxy.
C)   the right to bring suit for damages if the economy declines.
D)   certain residual rights following the liquidation of the company once creditors and claimants are paid.E) B) and C)
F) All of the above

Question 7

Which of the following is not a characteristic of effective reward and incentive systems?

Accepted Answer

A)   Performance measures are clear and highly visible.
B)   The structure is fixed to assure employees of consistency.
C)   The compensation system is perceived as fair and equitable.
D)   Objectives are well understood, and broadly accepted.E) A) and B)
F) B) and C)

Question 8

External governance control mechanisms include all the following except

Accepted Answer

A)   auditors.
B)   analysts.
C)   competitors.
D)   media.E) A) and B)
F) C) and D)

Question 9

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Accepted Answer

A)   posting written statements of the organizational goals and objectives.
B)   discouraging the formation of subcultures that isolate work groups.
C)   designing effective reward systems.
D)   encouraging employees to see themselves as free agents.E) A) and C)
F) B) and D)

Question 10

Many institutional investors are aggressive in protecting and enhancing their investments. They are shifting from ________ to owners. They are assuming the role of ________ shareholders and rigorously analyzing issues of corporate governance. In the process, they are reinventing systems of corporate monitoring and accountability.

Accepted Answer

A)   sellers; part-time
B)   investors; full-time
C)   investors; part-time
D)   traders; permanentE) C) and D)
F) All of the above

Question 11

Continuous monitoring, in the contemporary approach, is beneficial because

Accepted Answer

A)   it reduces time lags.
B)   it increases the time it takes to detect changes in the competitive environment.
C)   organizational flexibility is reduced.
D)   organization response time is increased.E) A) and B)
F) A) and C)

Question 12

In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. The risk is

Accepted Answer

A)   it becomes an attractive takeover target.
B)   the firm will be delisted by the stock exchange.
C)   the Securities and Exchange Commission will not allow it to declare dividends until the market value exceeds the book value.
D)   the firm will be unable to service its debt.E) B) and D)
F) A) and B)

Question 13

Strategic control systems, both informational and behavioral, are used to correct the performance and ultimate strategy of a firm.

Accepted Answer

A) True 
 B)False

Question 14

The board of directors is a group that has a ________ duty to ensure that the company is run consistently with ________ interests of the owners, or shareholders of a corporation and that acts as an ________ between the shareholders and management.

Accepted Answer

A)   legal; short-term; intermediary
B)   sworn; long-term; advisor
C)   fiduciary; long-term; intermediary
D)   formal; short-term; advisorE) A) and B)
F) A) and C)

Question 15

Which of the following is not one of the characteristics of a contemporary control system?

Accepted Answer

A)   It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans.
B)   It must focus on constantly changing information that is strategically important.
C)   It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.
D)   It generates information that is important enough to demand regular and frequent attention.E) None of the above
F) A) and B)

Question 16

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Accepted Answer

A)   One person holding both roles will be able to act more efficiently and effectively.
B)   CEO duality provides smoother strategic decision making.
C)   CEO duality creates unit across the board of directors and managers of a company.
D)   CEO duality slows down decision making.E) B) and C)
F) None of the above

Question 17

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity)  is

Accepted Answer

A)   widely dispersed.
B)   controlled almost completely by management.
C)   concentrated.
D)   often held by employee stock ownership programs.E) B) and D)
F) B) and C)

Question 18

The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential.

Accepted Answer

A) True 
 B)False

Question 19

It is generally argued that the takeover constraint deters management from

Accepted Answer

A)   engaging in opportunistic behavior.
B)   considering acquiring other companies.
C)   declaring dividends.
D)   increasing the level of borrowing of a firm.E) A) and B)
F) A) and C)

Question 20

Explain why control systems are necessary for strategy implementation.

Accepted Answer

Strategic control is the process of moni...

Exam 9: Strategic Control and Corporate Governance

The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential.

Correct Answer
verified

In single-loop learning, the assumptions, premises, goals, and strategies of the organization are continuously monitored, tested, and reviewed.

Correct Answer
verified

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests, like increasing long-term returns.

Correct Answer
verified

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Correct Answer
verified

It is generally argued that the takeover constraint deters management from

Correct Answer
verified

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity) is

Correct Answer
verified

External governance control mechanisms include all the following except

Correct Answer
verified

Strategic control systems, both informational and behavioral, are used to correct the performance and ultimate strategy of a firm.

Correct Answer
verified

Correct Answer
verified

Continuous monitoring, in the contemporary approach, is beneficial because

Correct Answer
verified

The best way to minimize improper and unethical conduct is to and .

Correct Answer
verified

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Correct Answer
verified

Individual and institutional shareholders have the same rights that include all the following except

Correct Answer
verified

In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. The risk is

Correct Answer
verified

Correct Answer
verified

Which of the following is not one of the characteristics of a contemporary control system?

Correct Answer
verified

The board of directors is a group that has a duty to ensure that the company is run consistently with interests of the owners, or shareholders of a corporation and that acts as an between the shareholders and management.

Correct Answer
verified

Which of the following statements about action plans is true?

Correct Answer
verified

Explain why control systems are necessary for strategy implementation.

Correct Answer
verified
Strategic control is the process of moni...
View Answer

Which of the following is not a characteristic of effective reward and incentive systems?

Correct Answer
verified

Exam 9: Strategic Control and Corporate Governance

The traditional approach to strategic control is interactive, while the contemporary approach to strategic control is sequential.

Correct AnswerverifiedShow Answer

In single-loop learning, the assumptions, premises, goals, and strategies of the organization are continuously monitored, tested, and reviewed.

Correct AnswerverifiedShow Answer

Research has shown that executives who have large holdings of stock in their firm are more likely to have diversification strategies more consistent with shareholder interests, like increasing long-term returns.

Correct AnswerverifiedShow Answer

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Correct AnswerverifiedShow Answer

It is generally argued that the takeover constraint deters management from

Correct AnswerverifiedShow Answer

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders) , the ownership (of equity) is

Correct AnswerverifiedShow Answer

External governance control mechanisms include all the following except

Correct AnswerverifiedShow Answer

Strategic control systems, both informational and behavioral, are used to correct the performance and ultimate strategy of a firm.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Continuous monitoring, in the contemporary approach, is beneficial because

Correct AnswerverifiedShow Answer

The best way to minimize improper and unethical conduct is to ________ and ________.

Correct AnswerverifiedShow Answer

In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought?

Correct AnswerverifiedShow Answer

Individual and institutional shareholders have the same rights that include all the following except

Correct AnswerverifiedShow Answer

In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. The risk is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not one of the characteristics of a contemporary control system?

Correct AnswerverifiedShow Answer

The board of directors is a group that has a ________ duty to ensure that the company is run consistently with ________ interests of the owners, or shareholders of a corporation and that acts as an ________ between the shareholders and management.

Correct AnswerverifiedShow Answer

Which of the following statements about action plans is true?

Correct AnswerverifiedShow Answer

Explain why control systems are necessary for strategy implementation.

Correct AnswerverifiedStrategic control is the process of moni...View AnswerShow Answer

Which of the following is not a characteristic of effective reward and incentive systems?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The best way to minimize improper and unethical conduct is to and .

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The board of directors is a group that has a duty to ensure that the company is run consistently with interests of the owners, or shareholders of a corporation and that acts as an between the shareholders and management.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Strategic control is the process of moni...
View Answer

Correct Answer
verified