Question 1

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

Question 2

According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquingcompany strategies.

Accepted Answer

A) True 
 B)False

Question 3

Takeover constraint describes

Accepted Answer

A)   constraints placed by the firm on raiders who want to take over the firm.
B)   legal constraints that limit the ability of the raiders to acquire a firm.
C)   provisions in the charter of a company that prevents it from attempting a takeover of other companies.
D)   the risk of being acquired by a hostile raider.E) B) and C)
F) All of the above

Question 4

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) All of the above
F) B) and C)

Question 5

Ritz-Carlton hotels employees meet each day for 15 minutes to share stories about how they went the extra yard to meet customer needs. What is the intended outcome of these activities?

Accepted Answer

A)   Stories help build a customer-centric culture.
B)   Storytime gives employees an opportunity to vent their frustrations.
C)   Storytime demonstrates to employees the importance of articulating explicit goals and objectives.
D)   Storytime gives management more control over employees.E) B) and D)
F) C) and D)

Question 6

Which of the following is not a key control lever of behavioral control?

Accepted Answer

A)   structure
B)   culture
C)   rewards
D)   boundariesE) B) and C)
F) None of the above

Question 7

If a board of directors is to be effective, it needs to allocate its scarce time to the ________ issues to which its members can add ________.

Accepted Answer

A)   most clear; capital
B)   most critical; value
C)   newest; information
D)   hardest; timeE) A) and C)
F) All of the above

Question 8

While there are 20 percent more companies in the United States than the mid-1990s, the number of firms that are publicly traded on a major stock exchange has dropped 45 percent compared to1995. Which of the following is one of the reasons why?

Accepted Answer

A)   Stock exchange fees are too high.
B)   Firm managers want more money for themselves.
C)   It lessens the threat of hostile takeovers.
D)   It permits managers the freedom to think shorter term.E) B) and C)
F) None of the above

Question 9

Andy Grove, former CEO and cofounder of Intel, encouraged openness by not having many of the trappings of success. This is an example of evolving from boundaries to rewards and cultureby

Accepted Answer

A)   hiring people who identify with the dominant values of the organization.
B)   developing managerial role models.
C)   maximizing training and indoctrination.
D)   aligning rules with organizational goals and objectives.E) None of the above
F) All of the above

Question 10

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 positions.E) All of the above
F) C) and D)

Question 11

Which of the following is not one of the characteristics of reward and incentive systems?

Accepted Answer

A)   They represent a poor means of influencing the culture of an organization.
B)   They focus efforts on high priority tasks.
C)   They motivate high levels of individual and collective task performance.
D)   They represent an effective control mechanism.E) B) and C)
F) A) and C)

Exam 9: Strategic Control and Corporate Governance

According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquingcompany strategies.

Correct Answer
verified

Takeover constraint describes

Correct Answer
verified

Andy Grove, former CEO and cofounder of Intel, encouraged openness by not having many of the trappings of success. This is an example of evolving from boundaries to rewards and cultureby

Correct Answer
verified

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 Answer
verified

Which of the following is not a key control lever of behavioral control?

Correct Answer
verified

Ritz-Carlton hotels employees meet each day for 15 minutes to share stories about how they went the extra yard to meet customer needs. What is the intended outcome of these activities?

Correct Answer
verified

Which of the following is not one of the characteristics of reward and incentive systems?

Correct Answer
verified

If a board of directors is to be effective, it needs to allocate its scarce time to the issues to which its members can add .

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

While there are 20 percent more companies in the United States than the mid-1990s, the number of firms that are publicly traded on a major stock exchange has dropped 45 percent compared to1995. Which of the following is one of the reasons why?

Correct Answer
verified

Exam 9: Strategic Control and Corporate Governance

According to the Business Roundtable, representing the largest U.S. corporations, the most important quality of a good board of directors is that they do not get involved in critiquingcompany strategies.

Correct AnswerverifiedShow Answer

Takeover constraint describes

Correct AnswerverifiedShow Answer

Andy Grove, former CEO and cofounder of Intel, encouraged openness by not having many of the trappings of success. This is an example of evolving from boundaries to rewards and cultureby

Correct AnswerverifiedShow 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

Which of the following is not a key control lever of behavioral control?

Correct AnswerverifiedShow Answer

Ritz-Carlton hotels employees meet each day for 15 minutes to share stories about how they went the extra yard to meet customer needs. What is the intended outcome of these activities?

Correct AnswerverifiedShow Answer

Which of the following is not one of the characteristics of reward and incentive systems?

Correct AnswerverifiedShow Answer

If a board of directors is to be effective, it needs to allocate its scarce time to the ________ issues to which its members can add ________.

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

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

Correct AnswerverifiedShow Answer

While there are 20 percent more companies in the United States than the mid-1990s, the number of firms that are publicly traded on a major stock exchange has dropped 45 percent compared to1995. Which of the following is one of the reasons why?

Correct AnswerverifiedShow Answer

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If a board of directors is to be effective, it needs to allocate its scarce time to the issues to which its members can add .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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