Question 1

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

Accepted Answer

A) True 
 B)False

Question 2

Individual and institutional shareholders have the same rights that include all except one of the following.Which one is not a shareholder right?

Accepted Answer

A)   the right to sell stock
B)   the 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 paidE) C) and D)
F) A) and C)

Question 3

The primary participants in corporate governance do not include _____________.

Accepted Answer

A)   the shareholders
B)   the financial institutions
C)   the management (led by the chief executive officer) 
D)   the board of directorsE) B) and D)
F) A) and B)

Question 4

Changes in board of director configurations since 1987 indicate that board directors were paid more in 2011,were older,were likely to be female and were independent from the company (not insiders).

Accepted Answer

A) True 
 B)False

Question 5

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Accepted Answer

A) True 
 B)False

Question 6

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 programsE) B) and D)
F) A) and B)

Question 7

Which of the following is not an example of how organizational culture exerts behavioral control?

Accepted Answer

A)   Culture helps maintain control by creating behavioral norms.
B)   Culture generates unwritten standards of acceptable behavior.
C)   Culture encourages individual identification with the organization and its objectives.
D)   Culture sets explicit boundaries.E) A) and B)
F) A) and C)

Question 8

Conditions that must be met for principal-principal (PP) conflicts to occur include all of the following except _____________.

Accepted Answer

A)   a dominant owner or group of owners who have interests that are distinct from minority shareholders
B)   legislation that protects the interests of minority shareholders
C)   a motivation for the controlling shareholders to exercise their dominant position to their advantage
D)   few formal (such as legislation or regulatory bodies)  or informal constraints that discourage or prevent the controlling shareholders from exploiting their advantageous positionsE) B) and C)
F) None of the above

Question 9

The traditional approach to strategic control is sequential.Which of the following is not one of the steps in the sequence?

Accepted Answer

A)   Action plans are submitted by lower level managers.
B)   Performance is measured against the predetermined goal.
C)   Strategies are implemented.
D)   Strategies are formulated and top management sets goals.E) C) and D)
F) None of the above

Question 10

Rules and regulations,rather than culture or rewards,would be used for strategic control at which type of company?

Accepted Answer

A)   software developer
B)   stock brokerage firm
C)   manufacturer of mass produced products
D)   high tech research facilityE) C) and D)
F) A) and C)

Question 11

When firms like Siebel Systems,Disney,Oracle,and Microsoft separated the roles of CEO and chairman of the board,they were creating CEO duality.

Accepted Answer

A) True 
 B)False

Question 12

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 13

What are the characteristics of short-term objectives? Provide examples of practical applications of these characteristics by organizations.

Accepted Answer

Short-term objectives are specific, meas...

Question 14

What are the advantages and disadvantages associated with using traditional approaches to strategic control?

Accepted Answer

Traditional approaches to strategic cont...

Question 15

In order to minimize the temptation for managers to act in their own self-interest,governance mechanisms exist for implementation consideration.Which of the following is not a primary means for monitoring managerial behavior?

Accepted Answer

A)   a board of directors that acts in the best interests of shareholders to create short-term value
B)   shareholder activism in which owners view themselves as shareowners
C)   a board of directors that acts in the best interests of shareholders to create long-term value
D)   managerial incentives to align management interests with those of the stockholdersE) A) and D)
F) A) and C)

Question 16

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 firmE) B) and D)
F) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The risk of being acquired by hostile raiders is often referred to as the takeover constraint.

Accepted Answer

A) True 
 B)False

Question 19

Boundaries and constraints are just used to maintain order in an organization and have little effect on the strategic priorities of the organization.

Accepted Answer

A) True 
 B)False

Question 20

Boundaries and constraints,when used properly,can minimize improper and unethical conduct.

Accepted Answer

A) True 
 B)False

Exam 9: Strategic Control and Corporategovernance

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

Correct AnswerverifiedShow Answer

The risk of being acquired by hostile raiders is often referred to as the takeover constraint.

Correct AnswerverifiedShow Answer

Rules and regulations,rather than culture or rewards,would be used for strategic control at which type of company?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Changes in board of director configurations since 1987 indicate that board directors were paid more in 2011,were older,were likely to be female and were independent from the company (not insiders).

Correct AnswerverifiedShow Answer

What are the characteristics of short-term objectives? Provide examples of practical applications of these characteristics by organizations.

Correct AnswerAnswered by ExamLex AIShort-term objectives are specific, meas...View AnswerShow Answer

Conditions that must be met for principal-principal (PP) conflicts to occur include all of the following except _____________.

Correct AnswerverifiedShow Answer

Which of the following is not an example of how organizational culture exerts behavioral control?

Correct AnswerverifiedShow Answer

The traditional approach to strategic control is sequential.Which of the following is not one of the steps in the sequence?

Correct AnswerverifiedShow Answer

Individual and institutional shareholders have the same rights that include all except one of the following.Which one is not a shareholder right?

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Correct AnswerverifiedShow Answer

Boundaries and constraints,when used properly,can minimize improper and unethical conduct.

Correct AnswerverifiedShow Answer

It is generally argued that the takeover constraint deters management from _____________.

Correct AnswerverifiedShow Answer

When firms like Siebel Systems,Disney,Oracle,and Microsoft separated the roles of CEO and chairman of the board,they were creating CEO duality.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages associated with using traditional approaches to strategic control?

Correct AnswerAnswered by ExamLex AITraditional approaches to strategic cont...View AnswerShow Answer

In order to minimize the temptation for managers to act in their own self-interest,governance mechanisms exist for implementation consideration.Which of the following is not a primary means for monitoring managerial behavior?

Correct AnswerverifiedShow Answer

The primary participants in corporate governance do not include _____________.

Correct AnswerverifiedShow Answer

The traditional approach to strategic control relies on feedback from performance measurement to formulate strategy.

Correct AnswerverifiedShow Answer

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct AnswerverifiedShow Answer

Boundaries and constraints are just used to maintain order in an organization and have little effect on the strategic priorities of the organization.

Correct AnswerverifiedShow Answer

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Short-term objectives are specific, meas...
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Traditional approaches to strategic cont...
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