Question 1

A staggered board

Accepted Answer

A)   increases the chances of a hostile takeover.
B)   has only a portion of the board stand for election each year.
C)   makes it easier for shareholders to curb a CEO's power.
D)   is seen in less than 50% of U.S. boards.
E)   all of the aboveF) A) and E)
G) C) and E)

Question 2

From the perspective of the public, the primary job of the board of directors is

Accepted Answer

A)   to lend credence to the decisions of the executive committee.
B)   dictated solely by legal requirements.
C)   to act as representatives for public identification.
D)   to closely monitor the actions of management.
E)   insulated from legal judgments because management actually makes the decisions.F) B) and D)
G) A) and E)

Question 3

What are the responsibilities of top management?

Accepted Answer

Top management responsibilities involve ...

Question 4

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.F) A) and B)
G) All of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following provides an example of a transformational leader?

Accepted Answer

A)   Phil Knight at Nike has energized his corporation and commanded respect.
B)   Louis Gerstner proposed a new vision for IBM to change its business model from computer hardware to services.
C)   Microsoft CEO, Steve Ballmer, crawled under tables to plug in PC monitors and diagnosed problems with an operating system.
D)   Verizon Communications CEO Ivan Seidenberg showed his faith in his people by letting his key managers handle important projects and represent the company in public forums.
E)   all of the aboveF) A) and E)
G) A) and B)

Question 7

Board members who are not employed by the corporation, but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Accepted Answer

A)   affiliated directors
B)   family directors
C)   retired directors
D)   management directors
E)   interlocked directorsF) None of the above
G) A) and B) A

Question 8

What percentage of the 100 largest companies listed in 2011 had boards of directors with at least one woman member?

Accepted Answer

A)   4%
B)   20%
C)   50%
D)   82%
E)   96%F) B) and D)
G) None of the above

Question 9

A direct interlocking directorate occurs when two corporations have directors who also serve on the board of a third firm.

Accepted Answer

A) True 
 B)False

Question 10

Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics.They are, however, increasingly frowned upon because of the possibility of collusion.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a task of the board of directors in strategic management?

Accepted Answer

A)   to monitor
B)   to implement
C)   to influence
D)   to initiate and determine
E)   to evaluateF) None of the above
G) All of the above

Question 12

A description of what the company is capable of becoming is referred to as

Accepted Answer

A)   strategic vision.
B)   strategic concept.
C)   strategic mission.
D)   strategic flexibility.
E)   strategic familiarity.F) C) and D)
G) None of the above A

Question 13

A 2011 McKinsey and Company survey found that less than 10 percent of a board's time is spent on strategy.

Accepted Answer

A) True 
 B)False

Question 14

The U.S.Clayton Act and Banking Act of 1933

Accepted Answer

A)   promote interlocking directorates by U.S. companies to foster better communications and working relationships.
B)   prohibit acts or contracts tending to create a monopoly.
C)   prevent unfair practices in interstate commerce.
D)   promote racial parity on the board of directors.
E)   prohibit interlocking directorates by U.S. companies competing in the same industry.F) A) and E)
G) B) and D)

Question 15

Contrast agency theory and stewardship theory.

Accepted Answer

Agency theory states that problems arise...

Question 16

The relationship among the board of directors, top management, and shareholders is referred to as

Accepted Answer

A)   corporate synergy.
B)   corporate management.
C)   corporate governance.
D)   corporate strategy.
E)   corporate responsibility.F) B) and D)
G) D) and E)

Question 17

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

Accepted Answer

A)   Population ecology
B)   Motivation
C)   Stewardship
D)   Agency
E)   Goal settingF) B) and D)
G) A) and D)

Question 18

The lowest degree of involvement for a board of directors is the catalyst level of interaction.

Accepted Answer

A) True 
 B)False

Question 19

What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?

Accepted Answer

A)   24%
B)   34%
C)   44%
D)   64%
E)   74%F) None of the above
G) B) and D) E

Question 20

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

Exam 2: Corporate Governance

A staggered board

Correct AnswerverifiedShow Answer

From the perspective of the public, the primary job of the board of directors is

Correct AnswerverifiedShow Answer

What are the responsibilities of top management?

Correct AnswerverifiedTop management responsibilities involve ...View AnswerShow Answer

A lead director

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following provides an example of a transformational leader?

Correct AnswerverifiedShow Answer

Board members who are not employed by the corporation, but handle the legal or insurance needs of the firm and are thus not true "outsiders," are what kind of directors?

Correct AnswerverifiedA

What percentage of the 100 largest companies listed in 2011 had boards of directors with at least one woman member?

Correct AnswerverifiedShow Answer

A direct interlocking directorate occurs when two corporations have directors who also serve on the board of a third firm.

Correct AnswerverifiedShow Answer

Interlocking directorates are a useful method for gaining both inside information about an uncertain environment and objective expertise about potential strategies and tactics.They are, however, increasingly frowned upon because of the possibility of collusion.

Correct AnswerverifiedShow Answer

Which of the following is NOT a task of the board of directors in strategic management?

Correct AnswerverifiedShow Answer

A description of what the company is capable of becoming is referred to as

Correct AnswerverifiedA

A 2011 McKinsey and Company survey found that less than 10 percent of a board's time is spent on strategy.

Correct AnswerverifiedShow Answer

The U.S.Clayton Act and Banking Act of 1933

Correct AnswerverifiedShow Answer

Contrast agency theory and stewardship theory.

Correct AnswerverifiedAgency theory states that problems arise...View AnswerShow Answer

The relationship among the board of directors, top management, and shareholders is referred to as

Correct AnswerverifiedShow Answer

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

Correct AnswerverifiedShow Answer

The lowest degree of involvement for a board of directors is the catalyst level of interaction.

Correct AnswerverifiedShow Answer

What percentage of public corporations have periodic board meetings devoted primarily to the review of overall strategy?

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

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Top management responsibilities involve ...
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A

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Agency theory states that problems arise...
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